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Local market’s 9-day rally is longest in 9 years

Aug 30,2018
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Korean shares closed higher Wednesday, as investors continued to scoop up shares thanks to positive global trade developments. The Korean won depreciated against the U.S. dollar.

The benchmark Kospi rose 5.91 points, or 0.26 percent, to close at 2,309.03. Trading volume was low at 4.2 trillion won ($3.78 billion).

Yesterday was the first time in nine years that the main bourse had closed higher for nine consecutive sessions. Analysts said Seoul shares gained ground as investors sought cheaper shares.

“The fact that the market closed higher for the ninth consecutive session indicates that investor sentiment has recovered,” said Lee Young-gon, a researcher at Hana Financial Investment.

News of Canadian officials flying to Washington to resume three-way talks on the North America Free Trade Agreement, or Nafta, also helped ease investor concerns over a global trade war. On Tuesday, Canada agreed to rejoin talks to restructure Nafta after the United States and Mexico reached a preliminary deal on the trilateral trade pact Monday.

Foreigners bought more shares than they sold, at a net 120 billion won, while retail investors offloaded a net 218 billion won. Institutions bought a net 428.2 billion won.

Technology firms closed higher, with Samsung Electronics rising 0.54 percent to 46,800 won and No. 2 chipmaker SK Hynix moving up 0.49 percent to 82,800 won. Samsung SDI moved up 2.39 percent to 235,500 won. Pharmaceutical shares also finished higher, with Celltrion adding 0.19 percent to 269,500 won and Samsung BioLogics climbing 0.11 percent to 450,000 won.

Hotel Shilla advanced 0.95 percent to 106,500 won on reports that the company won the duty-free business at Gimpo International Airport.

Carmakers finished weaker, with Hyundai Motor falling 0.8 percent to 124,000 won and Kia Motors losing 0.47 percent to 31,850 won.

Hyundai Engineering & Construction fell 2.14 percent to 59,400 won, while GS Engineering & Construction added 0.31 percent to 48,850 won.

The secondary Kosdaq climbed 5.01 points, or 0.63 percent, to 803.18. The 0.2 percent growth of the U.S. Nasdaq and foreign buying of semiconductor and IT shares helped drag the tech-heavy index up. The Korean won closed at 1,110.20 won against the greenback, up 0.20 won.

Bond prices ended mixed. The yield on three-year bonds moved down 1.0 basis point to 1.96 percent, and the return on 10-year bonds climbed 0.8 basis points to 2.36 percent.


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