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Institutions lift Kospi back over 2,480 points

Dec 14,2017
Korean stocks jumped back to surpass 2,480 points for the first time in five trading days on Wednesday, thanks to institutions continuing large-scale net purchases of local shares.

Another contributor was lifted expectations on economic relations between Korea and China improving. Although both countries will not release a joint press release, they decided to publish separate ones after the summit, said the Blue House on Tuesday. A delegation of 260 personnel from Korean companies departed on an official visit to China today alongside President Moon Jae-in.

The benchmark Kospi added 19.55 points, or 0.79 percent from the previous trading day, to close at 2,480.55.

Institutional investors bought 698.7 billion won ($642.8 million) in stocks, offsetting net selling by foreigners and individuals worth 204.2 billion and 515.4 billion won each.

Trade volume was moderate at 251.1 million shares worth 5.03 trillion won.

Mid-cap stocks did well on Wednesday and rose 1.5 percent. Small-caps increased 0.5 percent. Large-cap stocks mostly advanced across the board, collectively rising 0.7 percent.

However, the top two on Seoul’s main bourse were sluggish. Market bellwether Samsung Electronics fell 1.5 percent to 2,566,000 won. Chipmaker and No.2 market cap SK Hynix declined 1.29 percent to 76,800 won.

Among gainers were top carmaker Hyundai Motor, which rose 1 percent to 151,500 won, and its auto parts affiliate Hyundai Mobis that added 1.37 percent to 259,500 won. Steelmaker Posco climbed 0.75 percent to 334,500 and leading refiner SK Innovation was up 3.55 percent to 204,000 won.

Leading cosmetics companies AmorePacific and LG Household and Health Care both shed stocks the previous day but reversed to gain 2.57 percent to 319,500 won and 2.51 percent to 1,183,000 won, each.

By sector, construction stocks were strongest, having advanced 2.7 percent. Telecommunications rose 2.6 percent and pharmaceuticals 2.2 percent. Banks also performed well to rise 1.9 percent.

KB Financial Group advanced 4.29 percent to 60,800 won. Hana Financial Group also saw stock prices rise by 3.67 percent to 48,000 won.

The secondary Kosdaq closed at 772.22, up 11.82 points, or 1.55 percent from the previous session. Pharmaceutical shares led the uplift.

The local currency closed at 1,090.7 won against the U.S. dollar, up 1.7 won from the previous session’s close.

Returns on three-year and 10-year government bonds remained steady at 2.08 percent and 2.45 percent.

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