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Kospi jumps up while Kosdaq takes a dive

Jan 20,2018
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Seoul’s main bourse ended higher on Friday, boosted by increased buying by institutional investors.

The benchmark Kospi on Friday closed 4.45 points, or 0.18 percent, higher to close at 2,520.26.

This was an improvement from Thursday when the market barely moved as it only inched up 0.02 percent compared to the previous trading day.

The higher increase was largely contributed by institutional investors net buying, worth roughly 38 billion won ($35.7 million), which turned around from net selling the previous day. Foreign and retail investors, which were net buyers, offloaded their stocks.

“Still, foreign and institutional investors bought retail, construction, machinery and chemical stocks, giving a boost to the main index,” said Park Chun-young, an analyst at Daishin Securities.

Large-cap stocks had a mixed day of trading across the board.

Top carmaker Hyundai Motor rose 4.52 percent to 162,000 won, and LG Chem, a major chemicals and battery firm, was up 1.56 percent to 423,500 won.

Among decliners, market bellwether Samsung Electronics fell 1.16 percent to 2,466,000 won, and No. 2 chipmaker SK Hynix was down 2.53 percent to 73,300 won.

The junior market fell after loosing 18.20 points or 2.03 percent to close at 879.99.

This was a turn around from the 1.31 percent gain it made on Thursday. The decline was led by falling values of leading biopharmaceutical shares.

Celltrion, despite announcing an 82 percent surge in its net profits last year, fell sharply as it lost 9.87 percent to close at 287,800 won. It is the first time that the company’s stock has fallen below 300,000 won per share in more than a week. The last time it was below the barrier was on Jan. 10.

Cellitrion’s decline has a huge impact on the secondary market, as it ranks No.1 in market cap.

Deutsch Bank on Friday released a report that questioned the sustainability of the company’s profitability due to the relatively large spending on R&D compared to its global competitor. On Wednesday Nomura Securities recommended its investors reduce their holdings, adding that the stock seems to be overvalued, bringing down Celltrion’s value.

The won closed at 1,065.90 won against the U.S. dollar, up 4.80 won from the previous session.

Bond prices were mixed. The yield on three-year bonds fell 0.2 basis point to 2.170 percent, and the return on five-year government bonds rose 1.3 basis points to 2.443 percent.


BY LEE HO-JEONG [lee.hojeong@joongang.co.kr]