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Trade war fears ease, Kospi and Kosdaq rally

Mar 07,2018
Korean stocks ended higher Tuesday as Samsung Electronics and other export stocks rallied on easing fears of a global trade war. The Korean won appreciated against the U.S. dollar.

The benchmark Kospi rose 36.35 points, or 1.53 percent, to close at 2,411.41. Trade volume was moderate at 6.51 trillion won ($6.05 billion).

Foreigners and institutions were net buyers, purchasing 12.9 billion won and 161.8 billion won each. Individuals sold more than they bought, offloading a net 172.8 billion won.

The local stock market opened higher, taking a cue from a rebound on Wall Street overnight.

Seo Sang-young, an analyst at Kiwoom Securities, said receding fears of a global trade war and rising oil prices boosted export-related stocks.

By sector, securities were major winners, rising by 3.2 percent. Samsung Securities gained 1.81 percent to 39,350 won, while Mirae Asset Daewoo spiked 4.36 percent to 9,330 won.

Large-cap shares rose across the board.

Samsung Electronics jumped 4.03 percent to 2,351,000 won, and SK Hynix, a global chipmaker, climbed 5.24 percent to 82,400 won.

Naver, the operator of the country’s top Internet portal, rose 2.18 percent to 796,000 won. Kakao, developer of the country’s dominant chat app, spiked 7.72 percent to 132,500 won after it confirmed the launch of a subsidiary dedicated to the blockchain business.

Hyundai Motor gained 2.61 percent to 157,000 won, and its smaller affiliate Kia Motors rose 1.8 percent to 34,000 won.

The secondary Kosdaq also ended in positive terrain, gaining 14.21 points, or 1.68 percent, to 859.21. U.S. Nasdaq’s 1 percent rise and bargain hunting by institutions and foreigners weighed on the tech-heavy market’s incline.

Again, foreigners and institutions were buyers, purchasing a net 118.3 billion won and 109.2 billion won each. Individuals sold a net 214.9 billion won.

Celltrion Healthcare, a Celltrion subsidiary, increased 1.96 percent to 119,400 won, while Celltrion Pharm, another Celltrion subsidiary, climbed 2.20 percent to 88,200 won.

Chemicals and semiconductors also won, rising 2.3 percent each.

The local currency closed at 1,076.10 won against the U.S. dollar, down 5.9 won from the previous session’s close.

Bond prices, which move inversely to yields, ended lower. The yield on three-year bonds gained 0.1 basis points to 2.31 percent and the return on 10-year government bonds climbed 2.2 basis points to 2.76 percent.

BY KIM EUN-JIN, YONHAP [kim.eunjin1@joongang.co.kr]