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Market rises on good corporate results

May 17,2017
Seoul’s main bourse rose for the second consecutive trading day on the back of sound corporate earnings, analysts said. The local currency rose against the U.S. dollar.

On Tuesday, the benchmark Kospi closed at 2,295.33, up 4.68 points, or 0.20 percent, from the previous trading day.

The streak of foreign selling since Friday capped the main index’s gains.

Institutional investors bought 44.8 billion won ($40.1 million) in shares and retail investors purchased 22.6 billion won worth. Foreign investors, on the other hand, sold 106.8 billion won in shares. Trading volume was moderate at 360.3 million shares worth 6.03 trillion won. The market started off strong on Tuesday but the gains were limited as many investors went for profit taking from last week’s results.

“The upward momentum of the Kospi has been losing steam since late last week, as investors are taking a breather after the index hit an all-time high. Recent economic indicators in China that hovered below the forecast have also made the Kospi slow its pace,” Kim Sung-hwan, an analyst at Bookook Securities said.

Shares traded mixed, with brokerage firms and logistics companies ending higher while banks and pharmaceuticals lost ground.

Major brokerage house Mirae Asset Daewoo Securities jumped 3.66 percent to 9,260 won and CJ Logistics rose 1.7 percent to 179,500 won. Major commercial lender Woori Bank dipped 3.1 percent to 15,650 won, with Hanmi Pharmaceutical falling 2.41 percent to 364,000 won.

Samsung Electronics gained 0.61 percent to 2,319,000 won, while top IT service company Naver stayed flat at 839,000 won.

Shares of renewable energy companies spiked as newly elected President Moon Jae-in instructed a month-long shutdown of old coal power plants as part of his anti-fine dust policy initiative.

The secondary Kosdaq closed at 2,295.33, up 4.68 percent, or 0.2 percent, from the previous trading day.

The won ended at 1,116.00 won against the greenback, up 7.6 won from Monday’s close. The three year government bond yield rose one basis point to 1.72 percent, while the 10-year yield remained unchanged at 2.3 percent.

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