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Kospi ends higher for fifth consecutive session

June 08,2018
Korea’s main bourse closed higher for a fifth straight session Thursday as U.S. lawmakers moved to restrict President Donald Trump’s authority on imposing tariffs. The Korean won appreciated against the U.S. dollar.

The benchmark Kospi soared 16.82 points, or 0.69 percent, to close at 2,470.58. Trade volume was moderate at 7.8 trillion won ($7.3 billion).

The local stock market opened higher following overnight rallies on Wall Street and extended the gains as concerns over trade tensions receded.

U.S. senators are pushing to introduce legislation that would require the U.S. president to seek Congress’ approval before imposing tariffs on the grounds of national security.

Last week, the United States announced tariffs on steel and aluminum imports from the European Union, Canada and Mexico.

“Though the possibility of passing the bill isn’t that high, such a move by U.S. lawmakers is a positive factor for investment sentiment,” said Seo Sang-young, an analyst at Kiwoom Securities.

Institutions bought a net 174 billion won worth of local stocks while foreigners purchased a net 138 billion won. Retail investors dumped a net 318 billion won.

Most large-cap shares traded higher across the board, with bank and steel shares leading the rally.

KB Financial Group surged 2 percent to close at 56,100 won, and Shinhan Financial Group added 2.84 percent to 47,150 won.

Top steelmaker Posco jumped 4.4 percent to 368,000 won. Hyundai Steel surged 3.35 percent to 64,800 won.

Pharmaceutical giant Celltrion climbed 1.5 percent to 271,000 won.

Market kingpin Samsung Electronics fell 1.36 percent to 50,600 won. SK Hynix, a major chipmaker, was down 0.11 percent to 90,900 won.

No. 1 carmaker Hyundai Motor remained unchanged at 142,500 won.

The secondary Kosdaq gained 10.75 points, or 1.23 percent, to 887.91. The tech-heavy index closed in positive terrain, buoyed by the United States. Nasdaq closed at an all-time high for three consecutive sessions.

Large-cap pharmaceutical and semiconductor shares were winners.

Foreigners purchased a net 135.8 billion won, while institutions bought a net 5.0 billion won. Individuals offloaded a net 119.4 billion won.

The local currency closed at 1,069.00 won against the U.S. dollar, down 1.7 won from the previous session’s close.

Bond prices ended lower. The yield on three-year bonds increased 1.6 basis points to 2.22 percent, and the return on 10-year government bonds rose 3.4 basis points to 2.75 percent.

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