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Samsung pushes Kospi up after 10-day break

Oct 11,2017
Korean stocks closed higher Tuesday as Samsung Electronics and other tech stocks advanced on expectations of healthier earnings.

The benchmark Kospi climbed 39.34 points, or 1.64 percent from the previous session, to close at 2,433.81. Trade volume was moderate at 218 million shares worth 7.25 trillion won ($6.37 billion).

After closing for 10 days for Chuseok and other public holidays, the local stock market opened higher.

South Korean officials have been closely watching North Korea over fears that Pyongyang could make another provocative action to mark the anniversary of its Workers’ Party on Tuesday.

Park So-yeon, an analyst at Korea Investment & Securities, said, “Although worries about North Korea’s nuclear issue persist, a trend of overall economic improvement, including emerging markets, has played a more significant role in markets.”

Foreign investors bought big, scooping up a net 817.2 billion won worth of local stocks. Institutional and retail investors limited the uplift as they each offloaded 561.4 billion and 310.2 billion won.

Samsung Electronics rose 2.96 percent to end at 2,640,000 won, and SK Hynix, a leading chipmaker, jumped 7 percent to 88,700 won.

LG Electronics, on the other hand, was down 1.9 percent to 103,500 won. Affiliate LG Display also moved down 1.94 percent to 80,800 won.

Naver, the operator of the country’s top Internet portal, gained 1.48 percent to 756,000 won.

Hyundai Motor rose 0.33 percent to 151,000 won, and its smaller affiliate Kia Motors climbed 0.95 percent to 31,950 won.

The Korea Electric Power Corporation, a state-run energy company, was one of the few among the top tier that saw shares fall. It closed at 38,100 won, down 2.31 percent. Tobacco company KT&G also lost 1.9 percent to 103,500 won.

The secondary Kosdaq gained 1.77 points, or 0.27 percent from the previous session, to close at 654.59. Pharmaceuticals, semiconductors and IT shares all steadily increased.

Celltrion Health Care jumped 8.11 percent to 60,000 won, renewing its all-time high since the company went public in July. Medytox gained 2.47 percent to 506,700 won.

The local currency strengthened 0.9 percent to 1,135.1 won against the U.S. dollar.

Bond prices, which move inversely to yields, closed higher. Three-year government bond yields added five basis points to 1.94 percent while the ten-year yield was up four basis points to 2.42 percent.

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