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Institutional buying helps Kospi inch up

Aug 23,2017
Korean stocks snapped a two-day downfall to rise Tuesday as institutions helped offset net selling by foreigners and individuals.

The Kospi rose 10.33 points, or 0.44 percent, to close at 2,365.33. Trade volume was moderate at 245.76 million shares worth 3.827 trillion won ($3.3 billion), with winners outnumbering losers 437 to 364.

Institutions scooped up a net 89.2 billion won worth of stocks. But foreign and individual investors dumped 27.7 billion won and 82.4 billion won each.

Analysts didn’t expect a strong rally this week as investors remain cautious awaiting cues from the U.S. Federal Reserve’s annual economic policy symposium in Jackson Hole, Wyoming.

By sector, securities pushed up 1.8 percent and health related companies advanced 1.5 percent.

Technology stocks led gains, with bellwether Samsung Electronics advancing 0.34 percent to 2,350,000 won. Samsung Biologics jumped 4.19 percent to 286,000 won and group affiliate Samsung SDI also rose 3.92 percent to 185,500 won.

LG Chem strengthened 4.01 percent to 363,000 won, its highest closing price in 52 weeks. Chipmaker SK Hynix continued its rally to close up 1.49 percent to 68,200 won.

Among decliners, Hyundai Motor fell 0.68 percent to 147,000 won and its affiliate Kia Motors shed 0.56 percent to 35,500 won.

Portal site Naver lost 1.79 percent to 767,000 won and Samsung C&T shed 1.13 percent to 131,500 won.

The secondary Kosdaq closed at 644.26 on Tuesday, up 3.41 points or 0.53 percent from the previous session. Foreign investors prompted the uplift, net purchasing 52.7 billion won worth of stock.

Celltrion jumped 5.88 percent to 117,000 won alongside affiliate Celltrion Healthcare, up 0.31 percent to 48,200 won. Medytox added 0.07 percent to 534,500 won. CJ E&M rose 0.56 percent to 71,200 won.

The local currency closed at 1,133.8 won against the U.S. dollar, strengthening 0.5 percent from Monday’s close.

The three-year government bond yield was 1.8 percent, up two basis points, while the 10-year bond yield was steady at 2.01 percent.

BY SONG KYOUNG-SON, YONHAP [song.kyoungson@joongang.co.kr]