+ A

Bargain hunting lifts Kospi for 3rd straight day

Aug 13,2019
Shares extended gains Monday to a third consecutive day on the back of bargain hunting despite an intensifying trade war between the world’s largest economies. The won weakened to its lowest level against the dollar in more than three years.

The benchmark Kospi rose 4.54 points, or 0.23 percent, to close at 1,942.29. Trading volume was low at 416 million shares worth 3.82 trillion won ($3.1 billion), with gainers outnumbering losers 492 to 332.

The main bourse opened a tad higher and remained in positive terrain on the back of bargain hunting, analysts here said. The index shed 3 percent by the end of last week.

“Korean stock markets are apparently recovering from a short-term shock,” said Lee Kyoung-min, an analyst at Daishin Securities. “The market may continue having technical rebounds, although any sharp rise may be limited.”

Retail investors bought a net 201 billion won worth of shares, while institutions dumped a net 186 billion won. Foreigners offloaded a net 26.4 billion won.

Analysts said market sentiment still appeared to remain fragile due to escalating trade tensions between the United States and China.

On Friday, U.S. President Donald Trump said that Washington is not ready to strike a deal on tariffs with Beijing.

Tech shares were gainers among large-cap stocks. Market kingpin Samsung Electronics rose 1.27 percent to 43,700 won, and No. 2 chipmaker SK Hynix added 1.64 percent to 74,500 won. LG Electronics gained 0.33 percent to 60,500 won.

Auto shares traded mixed. Top automaker Hyundai Motor slid 1.13 percent to 131,000 won, but its smaller affiliate Kia Motors moved up 0.69 percent to 43,750 won. Auto parts maker Hyundai Mobis slipped 2.05 percent to 238,500 won, and No. 2 tire manufacturer Kumho Tire fell 0.36 percent to 4,185 won.

Bio shares ended mixed as well. Pharmaceutical giant Samsung BioLogics surged 7.24 percent to 289,000 won.

The secondary Kosdaq gained 4.13 points, or 0.70 percent, to close at 594.17, signaling hopes that the bio- and tech-heavy index could recover above the 600-mark.

The local currency closed at 1,216.20 won against the dollar, sharply up 5.7 won from the previous session’s close.

Bond prices, which move inversely to yields, ended higher. The yield on three-year bonds lost 0.4 basis points to 1.182 percent, and the yield on 10-year bonds fell 0.1 basis points to 1.285 percent.

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