The Korea Herald


Seoul stocks extend winning streak to 4th day on US stimulus hopes

By Yonhap

Published : Oct. 5, 2020 - 16:02

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(Yonhap) (Yonhap)
South Korean shares jumped by more than 1 percent to extend their winning streak to a fourth session Monday, as investor sentiment improved on hopes for fresh economic stimulus in the United States. The Korean won rose against the US dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) rose 30.11 points, or 1.29 percent, to close at 2,358.0.

Trading volume was moderate at about 746 million shares worth some 10.5 trillion won ($9 billion), with gainers outnumbering losers 647 to 211.

Foreigners bought a net 169 billion won, ending their seven-session selling streak, while retail investors sold a net 548 billion won. Institutions purchased a net 388 billion won.

The gains were largely attributed to optimistic statements by key US officials related to the new $2.2 trillion stimulus proposal.

Over the weekend, US President Donald Trump tweeted his support for the stimulus bill, with House Speaker Nancy Pelosi showing stronger confidence about the stimulus talks.

"The stock markets are paying attention to policy options that Trump can come up with (during his campaign)," Hana Financial Investment analyst Lee Jae-man said.

"The increasing possibility of stimulus agreement seems to be holding up the stock market against the political uncertainties," he added.

Most large caps closed higher in Seoul.

Market bellwether Samsung Electronics added 0.86 percent to 58,700 won, while No. 2 chipmaker SK hynix shed 0.95 percent to 83,200 won.

Hyundai Motor, the country's largest automaker, jumped 4.76 percent to 187,000 won, and its smaller affiliate Kia Motors spiked 7.68 percent to 50,500 won.

Leading steelmaker Posco surged 5.87 percent to 205,000 won.

Internet portal giant Naver advanced 0.67 percent to 298,500 won, and its rival Kakao added 1.65 percent to 370,500 won.

Leading chemical maker LG Chem climbed 0.76 percent to 659,000 won, and rechargeable battery maker Samsung SDI rose 0.69 percent to 436,500 won.

Top pharmaceutical firm Samsung Biologics retreated 0.72 percent to 685,000 won, and Celltrion dropped 1.17 percent to 254,500 won.

The local currency closed at 1,163.4 won per dollar, up 6.1 won from the previous session's close.

Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys rose 3.5 basis points to 0.881 percent, and the return on the benchmark five-year government bond added 4 basis points to 1.147 percent. (Yonhap)