+ A

Korean markets rebound on bargain hunting

Nov 27,2018
On Monday, the benchmark Kospi rebounded, gaining 25.54 points, or 1.24 percent, to close at 2,083.02, as investors hunted bargains after stocks dropped for four consecutive trading days last week.

“There’s a technical rebound after the index fell sharply. Foreigners have slowed their selling, and institutions are scooping up bargains,” said Kim Yoon-suh of Shinhan Investment.

Foreign investors, who were net purchasers on Friday, turned to net sellers as they dumped 38 billion won ($33.67 million) of shares.

Retail investors were busy selling to take profits on Monday’s gains. They sold a net 419 billion won worth of shares. Institutional investors who were net sellers the last two consecutive trading days last week bought a net 449 billion won.

Gainers outnumbered losers 631 to 205.

The Korea Exchange said the positive close on Monday was also the result of expectations about U.S. President Donald Trump and Chinese President Xi Jingping meeting during the G20 summit later this month. The meeting could ease trade tensions between the two countries.

Biopharmaceutical shares were up 4 percent followed by the electricity and gas shares, which increased 3.8 percent from last week’s close. Service company’ shares were up 3.2 percent.

Most of the top 10 shares by market capitalizations were up from last week’s close.

Market bellwether Samsung Electronics gained 0.47 percent from Friday’s close to 42,600 won, while SK Hyix was up 2.31 percent to 70,900 won.

Shares of Celltrion, the largest biopharmaceutical company, increase 8.82 percent to close at 19,500 won. Naver was up 8.77 percent.

Shares of KT and SK Telecom fall after a fire at one of KT’s switching. The fire led to the disruption of mobile and internet services in some areas.

KT shares were down 1.82 percent while SK Telecom fell 1.58 percent.

The country’s junior bourse Kosdaq also took an upturn as investment sentiment is on track to improve.

Kosdaq’s major players - mostly biopharmaceutical stocks - were buoyant with Celltrion Healthcare surging 6.59 percent to 84,100 won.

The Korean won closed at 1,128.90 won against the greenback, up 1.60 won from the previous session’s close.

Bond prices, which move inversely to yields, traded mixed. Yields on three-year Treasuries were unchanged at 1.914 percent, while the yields on benchmark five-year government bonds were down 0.1 basis points to 2.005 percent.

BY LEE HO-JEONG [lee.hojeong@joongang.co.kr]