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Kospi rebounds after five days of losses

Sept 08,2017
Korean stocks closed higher Thursday after falling five consecutive sessions as investors became less concerned about North Korean provocations, analysts said.

The benchmark Kospi added 26.37 points, or 1.14 percent, to 2,346.19. Trade volume was low at 274 million shares worth 4.68 trillion won ($4.14 billion), with losers outnumbering gainers at 569 to 239.

Analysts said investors’ sentiment was boosted after U.S. President Donald Trump’s remark on ruling out military action as the first choice for dealing with the nuclear threat from North Korea. His stance compares to earlier remarks where he threatened to unleash “fire and fury” against Pyongyang.

“Geopolitical risks which weighed down on the main bourse were eased following the latest remarks by the U.S. chief executive,” said Seo Sang-young, a researcher at Kiwoom Securities. “The lessening of worries over the possibility Washington is moving to scrap the free trade pact with Seoul was another plus for the market.”

Individuals offloaded 224.6 billion won, while institutions scooped up 125.7 billion won. Foreigners bought more shares than they sold at 70.6 billion won.

Samsung Electronics advanced 2.38 percent at 2,406,000 won, and LG Display added 0.95 percent at 31,950 won.

Financial shares also gathered ground, with Samsung Life Insurance moving up 5.41 percent at 117,000 won. Shinhan Financial Group increased 2.08 percent at 49,000 won.

Carmakers were also winners, with Hyundai Motor moving up 1.47 percent to 138,000 won and its auto parts arm Hyundai Mobis climbing 0.43 percent to 236,000 won.

The secondary Kosdaq continued Wednesday’s gains to push up 5.89 points, or 0.9 percent from the previous trading day, to 658.48.

Celltrion added 0.43 percent to 116,300 won alongside Medytox which added 0.94 percent to 556,800 won.

The local currency strengthened 0.5 percent from the previous session to close at 1,129.40 won against the U.S. dollar.

The yield on three-year and 10-year government bonds both dropped around one basis point to 1.78 percent and 2.28 percent each.

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