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Shares move up on trade hopes and sentiment

Jan 24,2019
Stocks bounced back Wednesday as the latest developments in trade negotiations between Washington and Beijing eased concerns among institutional investors, analysts said. The Korean currency appreciated against the dollar.

The benchmark Kospi advanced 10.01 points, or 0.47 percent, to finish at 2,127.78. Trading volume was moderate at 401.77 million shares worth 5 trillion won ($4.43 billion).

“Investor sentiment has been easily swayed by the latest developments in trade tensions between United States and China, with a lack of clear momentum in either direction,” Jeong Dai, an analyst at Meritz Securities, said. “Institutions seem to have bought undervalued stocks from the recent decline.”

Institutional investors bought a net 445.8 billion won worth of stocks. Foreign investors sold a net 173.8 billion won worth of shares, and individuals sold a net 274 billion won of stocks.

Auto shares rallied.

Hyundai Motor increased 1.18 percent to 129,000 won, and Hyundai Mobis jumped 4.62 percent to 215,000 won. Kia Motors also inched up 1.95 percent to 36,550 won.

Telecommunications advanced after the government vowed to expand support for the establishment of 5G infrastructure to get ahead in the emerging market.

Top mobile carrier SK Telecom gained 1.89 percent to 269,000 won, and its smaller rival KT rose 1.03 percent to 29,400 won. LG U+ also increased 2.09 percent to 17,100 won.

Tech shares were mixed.

Market kingpin Samsung Electronics slipped 0.36 percent to 42,000 won, while chipmaker SK Hynix rose 0.3 percent to 66,800 won.

LG Chem rose 0.82 percent to 369,000 won, while Posco dropped 0.75 percent to 265,000 won.

Top-cap bio ended mixed as well.

Samsung BioLogics, Samsung’s health care unit, fell 1.24 percent to 399,000 won. Celltrion remained unchanged at 200,000 won.

Hanmi Pharmaceutical retreated 2.91 percent to 434,500 won after the drugmaker said its partner Eli Lilly and Company would hand back its licensed new drug candidate and its commercialization rights.

The secondary Kosdaq rose 1.08 points, or 0.16 percent.

The tech and bio-heavy index was lifted by foreign buying of shares. The U.S. Nasdaq Composite Index fell 1.9-percent Tuesday.

The Korean won closed at 1,127.30 won against the dollar, down 3.20 won from Tuesday’s close.

Bond prices ended mixed. The yield on three-year bonds remained unchanged at 1.80 percent. The yield on 10-year bonds fell 1.3 basis points.

BY KIM HEYU, YONHAP [kim.heyu@joongang.co.kr]