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Cosmetics stocks strong on record day

May 05,2017
As Seoul’s main bourse reached an all-time high on Thursday, the majority of local shares, especially cosmetics stocks, showed marked improvements.

Cosmetic shares were strong as investors believed uncertainties, such as the Chinese government’s retaliation against the deployment of a U.S. missile defense system and growing protectionism in the United States, have decreased.

AmorePacific jumped 8.12 percent to 313,000 won ($276) and LG Household & Health Care rose 7.76 percent to 916,000 won. A report by the Korea Trade-Investment Promotion Agency on Thursday said that Korea was the fourth biggest exporter of cosmetics goods to the United States in the first quarter, up one spot from the previous quarter. The government data also showed that online sales of cosmetics continued to rise and the Chinese are still purchasing local goods.

Hyundai Motor gained 0.66 percent to end 152,000 won and Kia Motors rose 0.43 percent to 35,250 won. Coway rose 6.75 percent to 106,000 won, while SK Innovation dropped 2.01 percent to 170,500 won.

The state-run utility Korea Electric Power Corp. declined 0.67 percent to 44,450 won, and top steelmaker POSCO was down 2.36 percent to 268,500 won.

“Foreign buying and improved corporate earnings pushed the main index to a record high in six years,” said Bae Sung-young, a market analyst at KB Securities.

The secondary Kosdaq closed at 635.11, up 8.68 points, or 1.39 percent, from the previous trading day.

Celltrion gained 1.24 percent to 90,100, following its sales performance in the United States. The Korean biopharmaceutical firm said Thursday the sale of its biosimilar, Remsima, exceeded $17 million in the U.S. during the first quarter of this year.

Kakao rose 1.51 percent to 94,000 won and CJ E&M added 2.19 percent to 83,900 won. The local currency closed at 1,132.70 won against the U.S. dollar, down 2.20 won from the previous session’s close.

Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasuries fell 0.9 basis points to 1.681 percent and the return on the benchmark five-year government bond shed 1 basis point to 1.884 percent.

BY KIM YOUNG-NAM, YONHAP [kim.youngnam@joongang.co.kr]