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Kospi inches up due to institutional buying

Sept 13,2017
Korean stocks closed higher Tuesday as institutional buyers scooped up shares, taking a cue from overnight Wall Street gains, analysts said.

The benchmark Kospi advanced 6.39 points, or 0.27 percent, to close at 2,365.47. Trade volume was moderate at 328 million shares worth 4.9 trillion won ($4.3 billion), with gainers outnumbering losers 455 to 334.

The local stock market opened higher as market sentiment was boosted by overnight U.S. gains, but the increase was limited as foreigners offloaded shares in a move to cash in on recent gains, according to market watchers.

“The overnight U.S. gains on tech and bank shares had a positive impact on the local stock market,” said Seo Sang-young, a researcher at Kiwoom Securities. “Yet, a profit-taking stance among foreign investors kept the index from further going up.”

Institutions and individual investors purchased a net 137.1 billion won and 4.6 billion won worth of Kospi shares, respectively, while foreign investors offloaded a net 182.5 billion won.

Market heavyweights traded mixed with top cap Samsung Electronics losing 0.4 percent to end at 2,480,000 won as Apple was set to disclose its 10th anniversary iPhone models.

SK Hynix, a major chipmaker, jumped 1.22 percent to 74,700 won.

Banking shares remained in positive terrain, with leading Shinhan Financial Group moving up 0.41 percent to close at 48,950 won and Samsung Life Insurance rising 0.43 percent to 115,500 won.

Hyundai Motor, the country’s No. 1 carmaker, climbed 0.74 percent to end at 136,000 won, while its smaller affiliate Kia Motors shed 2.04 percent to 31,150 won.

The secondary Kosdaq closed at 660.05 on Tuesday, up 3.52 points, or 0.54 percent from the previous session.

Foreign investors were main contributors to the uplift, having purchased mainly on IT tech and semiconductor shares.

Top pharmaceutical companies saw positive results as well: Celltrion added 0.61 percent to 115,500 won alongside affiliate Celltrion Healthcare, which rose 2.8 percent to 45,900 won.

Medytox also went up 0.14 percent to 560,200 won.

The local currency closed at 1,128.50 won against the U.S. dollar, strengthening 0.3 percent from the previous session’s close.
Bond prices, which move inversely to yields, ended mixed. The yield on three-year and 10-year government treasuries remained unchanged at 1.75 percent and 2.25 percent each.

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