Seoul stocks rebound on bargain hunt

South Korean stocks ended their three-day losing streak on Friday as investors looked to buy oversold stocks after the recent plunge in local stocks. The Korean won fell against the US dollar.

Korea’s benchmark stock price index (KOSPI) rose 23.64 points, or 0.8%, to close at 2,971.02 points.

Trading volume moderated to around 649 million shares worth some 109 trillion won ($ 9.2 billion), with the winners outnumbering the losers from 431 to 403.

Foreigners bought 231 billion won net, and institutions bought 75 billion won, while retail investors sold 352 billion won.

Stocks traded higher as foreign and institutional investors picked up undervalued stocks.

“KOSPI was positively affected by the gain in Nadaq, largely on the stabilization of US Treasury yields,” said Lee Kyung-min, Daeshin Securities analyst.

“A slight gain in Chinese equities also seems to have helped the rise in KOSPI,” he added.

Technology, automotive and organic stocks dominated the market in Seoul.

Top cap Samsung Electronics rose 1.42% to 71,200 won, and No. 2 chipmaker SK hynix rose 1.36% to 111,500 won.

Pharmaceutical giant Samsung Biologics jumped 6.06% to 892,000 won after South Korea’s number of new coronavirus cases remained above 3,000 for the third day in a row.

LG Electronics climbed 8.98% to 133,500 won, following reports that LG Magna e-Powertrain, LG Electronics’ joint venture with Canadian auto parts maker Magna International Inc., could supply parts for the electric car developed by the American technology giant Apple Inc..

Major automaker Hyundai Motor rose 2.2% to 209,500 won, while electric car battery maker LG Chem lost 2.32% to 758,000 won.

The local currency was trading at 1,185.3 won against the US dollar, down 4.9 won from the close of the previous session. (Yonhap)

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