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Investor buying pushes Kospi up for 2nd day

Sept 30,2017
Seoul’s main bourse gained on Friday, pushed up as foreigners and institutions scooped up local shares.

The benchmark Kospi closed at 2,394.47, up 21.33, or 0.90 percent, from the previous session.

Foreign investors net bought 31.4 billion won ($27.1 million) on Friday in local shares. Institutional investors purchased 59.2 billion won. Retail investors, on the other hand, offloaded 146.7 billion won.

By sector, transportation equipment shares rose by 2.4 percent and pharmaceutical shares advanced by 2.0 percent.

Market bellwether Samsung Electronics inched up 0.04 percent to 2,564,000 won Friday. LG Chem, the nation’s top chemical and battery maker, increased 1.55 percent to 392,000 won. Leading steelmaker Posco nudged up 0.48 percent to 317,000 won.

Top auto company Hyundai Motor went up by 2.38 percent to 150,500 won. Sister company Kia Motors climbed up 2.59 percent to 31,650 won. Affiliate and auto parts maker Hyundai Mobis jumped 3.23 percent to 240,000 won.

The government announced on Thursday that it will provide tax breaks to Korean companies whose sales in China were hit by a political row between Beijing and Seoul for the latter’s decision to deploy a U.S.-led antimissile system. Auto companies have been hit hard because of the boycott by the Chinese consumers since March.

The government announcement pushed up local cosmetic shares as well, whose business in China also took a hit.

AmorePacific, the top cosmetic maker, strengthened 2.98 percent to 259,500 won. LG Household & Health Care jumped 4.93 percent to 936,000 won.

Shares of financial companies showed mixed movement on Friday.

KB Financial Group, the leading financial holding company in Korea by assets, gained 1.26 percent to 56,100 won. Woori Bank nudged up 0.85 percent to 17,850 won.

Shinhan Financial Group, one of the top financial holding companies, nudged down 0.20 percent to 50,300 won. Hana Financial Group also slid 1.15 percent to 47,350 won.

Korea’s stock markets will be closed from Oct. 2 through Oct. 9 as people celebrate Chuseok - the Korean harvest festival - and two other national holidays.

The local currency closed at 1,145.40 won against the U.S. dollar, up 3.70 won from the previous session’s close.

The yield on three-year government bond remained fixed at 1.89 percent while the return on 10-year government bonds fell two basis points to 2.38 percent.

BY CHOI HYUNG-JO, YONHAP [choi.hyungjo@joongang.co.kr]