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Shares rise on hopes for U.S.-China trade deal

Feb 21,2019
Korean shares ended higher Wednesday on hopes of the United States and China reaching an agreement on a trade deal. The Korean won appreciated against the dollar.

The benchmark Kospi rose 24.13 points, or 1.09 percent, to 2,229.76. Trading volume was moderate at 369.03 million shares worth 5.84 trillion won ($5.2 billion).

Retail investors sold a net 429.9 billion won worth of stock, and institutions sold a net 7.6 billion won of shares. Foreign investors bought a net 434.5 billion won of stock.

Market analysts say investors are awaiting the outcome of negotiations between the United States and China that resumed in Washington this week after the two sides met in Beijing last week.

They are also awaiting minutes from the Federal Reserve’s recent policymaking meeting, set to be released Wednesday in the United States, as they seek further guidance in adjusting their investment portfolios.

Most large-cap stocks advanced.

Tech stocks were the leading gainers, with Samsung Electronics rising 2.07 percent to 46,900 won, and No. 2 chipmaker SK Hynix climbing 2.71 percent to 75,700 won.

LG Chem inched up 1.15 percent to 394,500 won, while LG Household & Health Care climbed 5.47 percent.

Among decliners, Hyundai Motor fell 0.42 percent to 119,000 won, and No. 2 full-service carrier Asiana Airlines shed 0.36 percent to 4,195 won.

Mobile carriers finished mixed, with SK Telecom unchanged at 260,000 won, KT sliding 0.18 percent to 28,350 won and LG U + closing 1.01 percent up to 15,000 won.

Bio shares mostly remained in positive territory.

Shares of leading biosimilar manufacturer Celltrion dipped 0.70 percent to 213,500 won, but Samsung BioLogics, a biopharmaceutical affiliate of Samsung Group, rose 0.91 percent to 388,000 won. Hanmi Pharmaceutical rose by 0.93 percent to end at 490,000 won.

Steelmaker Posco rose 1.86 percent to 273,500 won.

The secondary Kosdaq rose 2.64 points, or 0.35 percent, to end yesterday’s session at 750.69.

The tech-heavy index was lifted on heightened hopes for a trade deal between the world’s two largest economies.

The Korean won closed at 1,123.50 won against the dollar, down 4.70 won from the previous session’s close.

Bond prices ended mixed. The yield on three-year bonds rose 0.2 basis points to 1.80 percent, and the yield on 10-year bonds declined 1.99 basis points to 0.4 percent.

BY JIN MIN-JI, YONHAP [jin.minji@joongang.co.kr]