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After one day dip, Kospi breaks record again

Oct 28,2017
Korean stocks ended at a fresh all-time high Friday on bargain hunting. Analysts said the dovish decisions from the European Central Bank on Thursday to reduce debenture purchases had a positive effect on the domestic stock market.

The benchmark Kospi gained 16 points, or 0.64 percent from the previous session, to close at 2,496.63.

Trade volume was moderate at 504.56 million shares worth 6.25 trillion won ($5.5 billion), with gainers outnumbering decliners 554 to 245.

Foreigners drove the uplift, having purchased 126.8 billion won worth of stock. Retail investors bought 700 million won in shares whereas institutional investors, on the other hand, net sold 95.7 billion won.

By sector, the steel industry gained the most of 3.6 percent. Services gained 1.5 percent and securities 1.4 percent.

Market bellwether Samsung Electronics rose 1.3 percent to 2,654,000 won and leading steelmaker Posco advanced 2.87 percent to 341,000 won. Hyundai Steel rose 4.94 percent to 57,400 won while affiliate Hyundai Heavy Industries added 2.71 percent to 151,500 won.

Web portal Naver gained 4.64 percent to 879,000 won - a record since mid-June. LG Chem was also a gainer among the list’s top by market cap. It added 2.79 percent to 405,500 won.

In contrast, top carmaker Hyundai Motor fell 0.63 percent to 158,500 won. Chipmaker and second market cap SK Hynix slipped for the fourth trading day by 0.38 percent to 78,400 won. Cosmetics giant AmorePacific slid 1.10 percent to 315,000 won as investors reaped from four trading days of gains. Rival LG Household and Health Care was down as well by 1.51 percent to 1,175,000 won.

The secondary Kosdaq rose 9.36 points, or 1.38 percent from Thursday to close at 689.97.

Despite the decline of the Nasdaq, the uplift came from net purchases from pharmaceutical and semiconductor company shares. Institutional investors contributed to the uplift.

Celltrion increased 1.69 percent to 175,000 won alongside affiliate Celltrion Healthcare, which added 0.5 percent to 60,800 won. ShillaJen also saw an uplift of 1.94 percent to 63,000 won. CJ E&M and Loen, both entertainment related companies, shed 0.36 percent to 84,000 won and 4.23 percent to 106,500 won, each.

The local currency closed at 1,130.50 won against the U.S. dollar, down 5.90 won from the previous session’s close.

Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds fell two basis points to 2.16 percent.

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