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Kospi up slightly as trade hopes offer support

June 25,2019
Shares closed higher Monday on the back of gains in tech and auto stocks amid speculation that the United States and China may strike a deal on trade this week. The won sharply rose against the dollar.

The benchmark Kospi rose 0.71 points, or 0.03 percent, to close at 2,126.33. Trading volume was moderate at 661 million shares worth 4 trillion won ($3.5 billion), with losers outnumbering gainers 462 to 372.

“After the U.S. Fed meeting, the market seems to be taking a breather,” said Lee Young-kon, an analyst at Hana Financial Investment. “Investors are taking to the sidelines ahead of key events.”

Institutions bought a net 164 billion won worth of stocks. But foreign investors and individuals sold a combined 173 billion won worth of stocks.

Investors are hoping to take a cue from the planned meeting between U.S. President Donald Trump and his Chinese counterpart Xi Jinping on the sidelines of the Group of 20 summit in Osaka, Japan from June 28 to 29, where the two leaders will try to settle their drawn-out trade dispute, analysts said.

Large-cap stocks were mixed, with Samsung Electronics falling 0.4 percent to 45,500 won. No. 2 chipmaker SK Hynix rose 1.5 percent to 66,900 won. LG Electronics jumped 1.12 percent to 81,300 won.

Bio shares ended mixed as well, with Celltrion falling 1.88 percent to 208,500 won but Samsung BioLogics gaining 1.42 percent to 321,500 won. Hanmi Pharmaceutical decreased 0.36 percent to 417,000 won.

Auto shares ended on the positive terrain. Hyundai Motor gained 1.4 percent to 142,500 won, and its sister company Kia Motors jumped 2.48 percent to 43,400 won. Auto parts maker Hyundai Mobis also gained 1.33 percent to 229,000 won.

Posco inched up 0.41 percent to 244,500 won. Naver gained 0.44 percent to 113,500 won, and SK Telecom fell 0.76 percent to 260,000 won.

The secondary Kosdaq fell 4.95 points, or 0.68 percent, to close at 717.69.

The index went south as foreign investors and institutions mass offloaded local stocks after seeing the Nasdaq shares dip 0.2 percent over the weekend.

The local currency closed at 1,156.50 won against the dollar, sharply down 7.5 won from the previous session’s close.

Bond prices, which move inversely to yields, ended mixed. The yield on three-year bonds remained unchanged at 1.440 percent, while the return on 10-year bonds lost 0.6 basis points to 1.563 percent.

BY KO JUN-TAE, YONHAP [ko.juntae@joongang.co.kr]