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Stocks recover after North ICBM launch

July 06,2017
Seoul’s main bourse rebounded on Wednesday as investors brushed off geopolitical woes stemming from North Korea’s missile launch, analysts said. The Korean won rose against the U.S. dollar.

The benchmark Kospi closed at 2,388.35, up 7.83 points, or 0.33 percent, from the previous trading day.

After the market closed on Tuesday, North Korea claimed it had successfully conducted its first test of an intercontinental ballistic missile.

The local stock market opened lower, but pared earlier losses on hopes that Samsung may deliver sound second-quarter earnings. Samsung is set to release its second-quarter earnings guidance this week.

“Investors seem to be cautious, and geopolitical risks may help increase market volatility,” said Lee Kyong-min, an analyst at Daishin Securities.

Analysts said the Kospi has risen for the seventh consecutive month, which means that a profit-taking stance may take hold among investors.

Retail investors bought 54.7 billion won ($47.6 million) in shares. Institutional investors, on the other hand, offloaded 82.3 billion won worth and foreign investors sold 8.8 billion won in shares.

Top market cap Samsung Electronics, rose 1.23 percent to end at 2,379,000 won, and SK Hynix, a major chipmaker, gained 3.34 percent to 68,000 won. Posco advanced 1.55 percent to end at 295,500 won, and SK Innovation closed flat at 160,000 won.

The state-run Korea Electric Power Corp. gained 1.69 percent to finish at 42,000 won.

LG Display continued to rise ending at 38,900 won, up 1.04 percent from the previous session’s close.

In contrast, automakers and chemical firms remained sluggish.

Hyundai Motor continued to lose ground, falling 1.58 percent to end at 156,000 won amid concerns that its sales in China remained in a slump due to the ongoing diplomatic row between Beijing and Seoul.

AmorePacific, the nation’s leading cosmetics maker, slumped 2.92 percent to end at 299,500 won.

The won closed at 1,150.50 against the U.S. dollar, up 0.1 won from the previous session’s close.

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