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Market rebounds as concerns over Italy subside

June 01,2018
Korean stocks rebounded from the previous session’s losses on Thursday as worries over Italy’s possible eurozone exit eased. The Korean won rose against the U.S. dollar.

The benchmark Kospi added 13.98 points, or 0.58 percent, to close at 2,423.01. Trade volume was large at 13 trillion won ($12 billion).

The main index opened higher following overnight gains on Wall Street after Italy’s populist parties suggested they would make an effort to form a coalition government.

“European bourses have been losing ground amid woes over Italy’s political turmoil and its possible exit from the eurozone,” said Jung In-ji, an analyst at Yuanta Securities Korea, “and these anxieties have been considerably reflected on the market. It is unlikely that there will be a huge additional impact stemming from the issue in the meantime.”

Individual investors bought 241 billion won, while institutions offloaded 1.24 trillion. Foreign investors bought 950 billion won.

Large-cap tech shares saw mixed trade, with market leader Samsung Electronics advancing 2.42 percent to close at 50,700 won.

The tech giant had plunged 3.51 percent in the previous session following reports that Samsung’s insurance unit would sell its shares in Samsung Electronics in a bloc deal. SK Hynix, a major chipmaker, was down 1.68 percent to 93,400 won.

Chemical shares were among winners. Industry leader LG Chem soared 2.42 percent to finish at 338,500 won, and Lotte Chemical inched up 1.52 percent to 368,500.

Steelmakers remained in negative terrain, with Posco falling 0.73 percent to 339,500 won, and Hyundai Steel retreating 2.37 percent to 61,800 won.

Naver, the country’s largest portal operator, jumped 2.61 percent to 669,000 won, while Samsung BioLogics, a pharmaceutical affiliate, climbed 2.23 percent to 435,000 won.

The secondary Kosdaq gained 5.44 points, or 0.62 percent, to 879.66. The tech-heavy index closed in negative terrain, buoyed by 1.4 percent incline in the U.S. Nasdaq Biotech index and gains on large-cap construction and pharmaceutical shares.

Foreigners bought a net 217 billion won. Institutions offloaded a net 93.7 billion won, while individuals sold a net 111.5 billion won.

The local currency closed at 1,077.7 won against the U.S. dollar, down 3.2 won from the previous day’s close.

Bond prices, which move inversely to yields, ended mixed. The yield on three-year bonds rose 0.3 basis points to 2.2 percent, and the return on 10-year bonds fell 0.2 basis points to 2.7 percent.

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