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Kospi gains 9.33 points as investors seek deals

Dec 28,2017
Korean stocks closed higher Wednesday as retail investors sought bargains, analysts said. The local currency rose against the U.S. greenback.

The benchmark Kospi gained 9.33 points, or 0.38 percent, to 2,436.67. Trade volume was slim at 191 million shares worth 4.8 trillion won ($4.46 billion), with losers beating gainers 431 to 374.

Analysts said Seoul shares closed higher as investors looked for undervalued stocks amid reports that the latest drop of the benchmark index was excessive. The growth, however, was limited, as the previous trading session marked the deadline for shareholders to obtain rights to receive dividends from shares.

Listed firms’ move to issue new shares had an adverse impact on the market, they added.

“Some companies are rolling out massive paid-in capital increase programs,” said Seo Sang-young, a researcher from Kiwoom Securities. “The factor led some industrial sectors to lose ground together, which emerged as a burden for the main bourse.”

Individuals bought more shares than they sold, at 465 billion won. Foreigners and institutions, on the other hand, offloaded 109 billion won and 376 billion won, respectively.

Chemical shares had mixed fortunes, with LG Chem inching up 0.64 percent to 394,500 won while LG Household & Health Care lost 0.68 percent to end at 1,174,000 won. AmorePacific moved up 1.34 percent to 302,000 won.

Financial shares had a bearish day, with KB Financial falling 1.25 percent to 63,000 and Samsung Life Insurance moving down 0.4 percent to 123,500 won. Shinhan Financial shed 2.75 percent to end at 49,500 won.

Market behemoth Samsung Electronics advanced 2.41 percent to 2,468,000 won, and No. 2 chipmaker SK Hynix shot up 1.49 percent to 75,100 won. LG Electronics jumped 7.86 percent to 107,000 won.

The secondary Kosdaq closed at 791.95, up 29.74 points or 3.90 percent from the previous trading day.

Top 10 listed shares in the tech heavy stock market all gained except Loen Entertainment, which dipped 0.09 percent to 112,900 won.

Pharmaceutical companies excelled. Celltrion jumped 15.06 percent to close at 220,000 won and SillaJen grew 7.22 percent to 84,700 won. The local currency closed at 1,074.10 won against the U.S. dollar, up 2.00 won from the last session. Bond prices, which move inversely to yields, ended lower. The yield on three-year Treasurys gained 2.1 basis points to 2.150 percent. The return on benchmark five-year government bonds added 3.0 basis points to 2.360 percent.

BY KIM JEE-HEE, YONHAP [kim.jeehee@joongang.co.kr]