Kospi closes higher to snap two-day losing streak

Stocks ended modestly higher on Monday, snapping a two-day losing streak, as investors bought major chip-related shares on bargain hunting after Wall Street extended its record-setting rally. The won weakened against the dollar.

The benchmark Kospi rose 40.89 points, or 0.65 percent, to close at 6,299.66 after choppy trading.

The index opened 0.76 percent higher and surged as much as 2.16 percent in early trading before paring some of its gains. The market later moved mostly sideways following heavy foreign selling.

Trade volume was moderate at 629.9 million shares worth 29.09 trillion won ($20.5 billion), with gainers far outnumbering losers 695 to 183.

Foreign investors alone sold a net 1.48 trillion won worth of stocks, while institutions and retail investors purchased a net 567.4 billion won and 899.8 billion won, respectively.

“Large-cap semiconductor stocks came under pressure following reports that Apple is considering adopting memory chips from Chinese chipmaker CXMT, but bargain hunters moved into semiconductor equipment and materials stocks,” said Lee Kyung-min, an analyst at Daishin Securities.

On Friday, Wall Street advanced following U.S. job reports that eased concerns over a U.S. rate hike. The Dow Jones Industrial Average rose 0.28 percent, and the S&P 500 added 0.62 percent to a fresh record. The tech-heavy Nasdaq composite Index increased 1.3 percent.

In Seoul, large-cap stocks finished mixed.

Samsung Electronics surrendered 0.43 percent to 230,000 won after opening higher, and SK hynix also edged down 0.14 percent to 1.42 million won after also starting in positive territory.

In contrast, LG Energy Solution gained 2.08 percent to 367,500 won, and Hyundai Motor went up 3.16 percent to 408,000 won.

The won weakened by 2.3 won from the previous session to stand at 1,418.4 won against the dollar as of 3:30 p.m.

Yonhap