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Markets bounce back from Friday’s plunge

Mar 27,2018
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Korean stocks closed higher on Monday as investors scooped up bargains after the sharp dip in the previous session.

The won also appreciated against the U.S. greenback while trade disputes between Washington and Beijing continued to loom.

The benchmark Kospi gained 20.32 points, or 0.84 percent, to 2,437.08. Trade volume was moderate at 5.86 trillion won ($5.42 billion).

While the main bourse plunged a whopping 3.18 percent on Friday as investors worried over the trade disputes between the United States and China, analysts said the market was able to rebound yesterday due to investors seeking out shares that lost value on Friday.

“The market was able to rebound as investors bought undervalued shares amid the perception that the market fell excessively in the short term,” said Lee Young-kon, an analyst at Hana Financial Investment.

Foreigners offloaded 101.3 billion won, while individuals bought more shares than they sold at 52.3 billion won. Institutions were also net buyers at 46 billion won.

Tech shares closed higher, with Samsung Electronics adding 1.13 percent to 2,514,000 won and LG Electronics rising 2.35 percent to 109,000 won. SK Hynix gained 1.08 percent to 84,000 won.

Korea’s No. 1 steelmaker Posco climbed 2.02 percent to 328,000 won, and Hyundai Steel moved up 2.33 percent to 50,600 won.

Carmakers closed bearish, with top automaker Hyundai Motor falling 1.32 percent to 149,500 won and auto parts maker Hyundai Mobis losing 0.21 percent to 232,500 won.

Mobile carriers also lost ground, with market leader SK Telecom falling 0.88 percent to 226,500 won and KT losing 0.37 percent to 26,950 won. LG U+ lost 0.81 percent to 12,300 won.

The secondary Kosdaq jumped 24.01 points, or 2.89 percent, to 853.69. The secondary market closed up for the first time in four sessions, as foreigners and institutions went bargain shopping for large-cap IT and semiconductor shares.

By sector, semiconductors and pharmaceuticals each gained 1.8 and 3.4 percent. Major bio player SillaJen picked up 8.47 percent to 108,800 won after one of its vaccinia viruses was approved of patent registration in Europe. The local currency closed at 1,081.10 won against the dollar, down 1.10 won from the previous session.

Bond prices, which move inversely to yields, closed lower. The yield on three-year bonds added 2.1 basis points to 2.24 percent, and the return on 10-year government bonds rose 3.9 basis points to 2.69 percent.


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