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Good response to summit helps Kospi inch up

Nov 09,2017
Seoul’s main bourse closed slightly higher on Wednesday, pushed up by local tech shares. The benchmark Kospi went up 6.96 points, or 0.27 percent, to close at 2,552.40 on Wednesday, snapping a two-day fall.

The local stock market opened lower due to declines in financial and chemical shares, but the index turned higher following gains in tech shares.

“Samsung Electronics drove the index higher, though a heavy selling spree by institutional investors kept the figure from rising further,” said Lee Kyung-min, an analyst at Daishin Securities.

Retail investors were net buyers Wednesday, scooping up 62.2 billion won ($55.8 million) in local stocks. Foreign investors offloaded 3.8 billion won and institutional investors net sold 106.0 billion won.

By sector, electrical and electronics shares and pharmaceutical stocks each advanced by 1.1 percent.

Market heavyweight Samsung Electronics rose 1.18 percent to close at 2,838,000 won. SK Hynix, the second-leading chipmaker in Korea, inched up 0.97 percent to 83,200 won. Korea Electric Power Corporation, a state-run energy company, nudged up 0.65 percent to 38,500 won. Leading oil refiner SK Innovation gained 1.17 percent to 216,500 won.

Cosmetic shares were in positive terrain, thanks to the summit between Korean president Moon Jae-in and Chinese counterpart Xi Jinping scheduled for this weekend.

AmorePacific, Korea’s leading cosmetic company, advanced 1.72 percent to 325,500 won. LG Household and Health Care, another cosmetics company, jumped 3.32 percent to 1,246,000 won.

LG Chem, Korea’s top battery producer, remained fixed at 409,000 won. Top automotive company Hyundai Motor also stayed unchanged at 155,000 won. Its sister company Kia Motors, on the other hand, inched down 0.72 percent to 34,500 won while affiliate parts maker Hyundai Mobis nudged down 0.38 percent to 265,000 won.

Naver, a portal giant in Korea, shed 1.28 percent to 849,000 won. Leading steelmaker Posco tumbled 2.31 percent to 316,500 won.

KB Financial Group, Korea’s leading financial holding company by asset size, retreated 0.86 percent to 57,400 won and its rival Shinhan Financial Group slipped 2.99 percent to 48,600 won. The secondary Kosdaq closed higher at 709.11, up 7.97 points, or 1.14 percent, from the previous closing.

The yield on three-year government bond rose by two basis points to 2.15 percent while that of 10-year bond remained fixed at 2.54 percent.

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