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(LEAD) Seoul stocks end higher on bargain hunting

All News 17:03 July 20, 2018

(ATTN: ADDS bond yields at bottom)

SEOUL, July 20 (Yonhap) -- South Korean stocks ended higher Friday, as investors moved to pick up bargains looking ahead the second-quarter corporate earnings, analysts said. The Korean won fell against the U.S. dollar.

The benchmark Korea Composite Stock Price Index added 6.9 points, or 0.30 percent, to close at 2,289.19, making a turnaround from a four-day losing streak. Trade volume was slim at 346.9 million shares worth 4.83 trillion won (US$4.27 billion), with losers outnumbering gainers 440 to 350.

After opening lower following losses on Wall Street, the index fluctuated between the positive and negative territory throughout the session before consolidating upward momentum.

Institutions and individuals scooped up a net 67.2 billion won and 50.6 billion won worth of local shares, respectively, effectively offseting foreigners' sell-off of 121.5 billion won worth of stocks.

"The Chinese yuan recovered its drop thanks to the signs of the authorities' intervention to prevent the currency from sliding further, and that seems to help the market reverse losses," said Lee Young-gon, an expert at Hana Securities.

"Heading into the earnings season, investors may find justifications to pick some shares up which have tumbled throughout this week, though lingering concerns over global trade spats have made them remain cautious," he added.

Auto shares gathered ground, as companies in the U.S. voiced dissent over Trump's tariffs. Top carmaker Hyundai Motor spiked 2.42 percent to 127,000 won, and its smaller affiliate Kia Motors advanced 0.94 percent to 32,200 won.

Insurers and financials also went up, buttressing the index.

Samsung Life Insurance surged 1.88 percent to 97,300 won, and Hanwha Life Insurance rose 1.03 percent to 4,920 won.

Woori Bank rose 0.61 percent to 16,500 won, after reporting strong profits in the first half of this year, and KB Financial Group added 0.56 percent to 53,900 won.

But steel and chemicals also lost ground, limiting the market's further growth. Top steelmaker POSCO sank 2.7 percent to 306,000 won and LG Chem shed 1.04 percent to 332,500 won.

Bio shares also drifted lower. Pharmaceutical giant Celltrion decreased 1.04 percent to 285,500 won, though Samsung Biologics inched up 0.24 percent to end at 424,500 won.

Tech giants had mixed fortunes. Bucking the trend of this week's bearish market, market bellwether Samsung Electronics rose 1.17 percent to 47,450 won to log a three-day winning streak. But SK hynix dropped 2.66 percent to 87,900 won on profit-taking.

The South Korean currency closed at 1,133.7 won against the U.S. dollar, down 0.5 won from Thursday's close.

Bond prices, which move inversely to yields, ended higher. The yield on three-year Treasurys shed 1.2 basis points to 2.077 percent, and the return on benchmark five-year government bonds lost 1.4 basis points to 2.315 percent.

graceoh@yna.co.kr
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