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Kospi stays above 2,500 mark for second day

Nov 01,2017
Korean stocks extended their gains to a third day to finish at a fresh all-time high Tuesday, as investors scooped up market heavyweights such as electronics and automakers, market analysts said. The announcements of Korea and China agreeing to normalize relations also created a boost for companies that conduct a lot of business targeted at Chinese consumers.

The benchmark Kospi rose 21.50 points, or 0.86 percent, to close at 2,523.43.

Trade volume was moderate at 310 million shares worth 7.61 trillion won ($6.79 billion), with gainers outnumbering losers 459 to 333.

The local stock market opened higher despite overnight losses on Wall Street, as Samsung Electronics, the top market cap, reported another record third-quarter result and vowed to return more to shareholders.

“Local companies’ business performance is expected to further improve, which will fuel the local stock market climb,” said Lee Kyong-min, an analyst at Daishin Securities.

Foreign investors bought a net 438.3 billion won worth of local stocks, while institutional investors dumped 395.8 billion won alongside retail investors that shed 19 billion won.

Samsung shares did generally well. Samsung Life Insurance added 4.25 percent to end at 135,000 won. Samsung C&T rose 3.14 percent to 148,000 won while Samsung BioLogics added 2.67 percent to 384,000 won.

SK Hynix, a major chipmaker, rose 3.01 percent to 82,200 won.

Automakers remained in positive terrain, with Hyundai Motor, the No. 1 automaker, jumping 3.21 percent to 161,000 won. Its smaller affiliate Kia Motors advanced 2.46 percent to end at 35,400 won.

Hyundai Heavy Industries moved up 4.33 percent to end at 156,500 won after reporting strong third-quarter earnings. For this year’s third quarter, the shipbuilder raised 3.8 trillion won in sales and operating profit of 93.5 billion won.

Lotte Corporation, the new holding firm for Korea’s No. 5 conglomerate, surged 5.82 percent to end at 74,500 won, following signs of relations improving between China and Korea.

The secondary Kosdaq rose 4.52 points, or 0.66 percent from Monday, to close at 694.2 on Tuesday. Institutional and retail investors prompted the uplift by purchasing 49.7 billion won in stock.

The local currency closed at 1,120.4 won against the U.S. dollar.

The yield on three-year bonds increased three basis points to 2.16 percent and the return on 10-year government bonds gained five basis points to 2.57 percent.

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