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Markets gain as Hyundai Motor shares spike

Feb 13,2020
Stocks again closed higher Wednesday as concerns over the outbreak of the new coronavirus eased somewhat, encouraging investors to begin taking risks. The local currency rose against the dollar, also for a second consecutive session.

The Kospi added 15.26 points, or 0.69 percent, to close at 2,238.38. Trading volume was moderate at 623 million shares worth about 6.8 trillion won ($5.8 billion). Gainers narrowly beat losers, 415 to 408.

The index slipped into negative terrain early but rebounded on large cap gains, led by autos and pharmaceuticals, amid signs that the new coronavirus outbreak is taking a breather, prompting investors to be more open to risk-taking.

Korea had reported 28 confirmed cases of the virus as of Wednesday, adding only one additional case since Sunday.

The Kospi rose 1 percent on Tuesday, snapping a two-day losing streak.

Foreigners offloaded local stocks for a third consecutive session, dumping a net 218 billion won on Wednesday. Institutions purchased a net 149 billion won, while individuals scooped a net 46 billion won.

Large caps were mixed.

Samsung Electronics jumped 1 percent to 60,500 won, and chipmaker SK hynix added 0.2 percent to close at 100,000 won.

LG Electronics rose 1.08 percent to close at 67,900 and LG Chem tumbled 1.33 percent to 408,000 won.

Automaker Hyundai Motor spiked 2.64 percent to 136,000 won, one day after the carmaker and its smaller affiliate Kia Motors partially resumed operations of production facilities. Factories had been shut down since late last week due to a shortage of parts from their Chinese suppliers.

Kia Motors added 0.73 percent to close at 41,650 won.

Korea’s cosmetics maker, Amorepacific, climbed 3.84 percent to 189,500 won, and LG Household & Health Care, the homegrown beauty company, rose 1.16 percent to 1,398,000 won.

Pharmaceutical firm Samsung BioLogics advanced 0.38 percent to 530,000 won, while Celltrion gained 0.29 percent to reach 174,000 won.

The won closed at 1,179.50 per dollar, down 2.10 won from the previous session’s close.

The secondary Kosdaq was up 4.25 points, or 0.62 percent, to close at 686.59.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year bonds lost 0.2 basis points to 1.299 percent, while the return on the benchmark 10-year government bond added 3.1 basis points to reach 1.60 percent.

BY KIM YEON-AH, YONHAP [kim.yeonah@joongang.co.kr]