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Seoul stocks surge to over 2-yr high on Biden effect; Korean won at nearly 2-yr high

All News 16:12 November 09, 2020

SEOUL, Nov. 9 (Yonhap) -- South Korean shares extended their winning streak to a sixth day to hit an over 2-year high on Monday as investor appetite for risky assets increased following Joe Biden's victory in the U.S. presidential election. The Korean won surged to a 22-month high against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) rose 30.7 points, or 1.27 percent, to close at 2,447.2 points, the highest since 2,468.83 points on June 12, 2018.

Trading volume was high at about 1.3 billion shares worth some 14.6 trillion won (US$13.1 billion), with gainers outnumbering losers 745 to 110.

Foreigners bought a net 328 billion won, while retail investors sold a net 677 billion won. Institutions purchased a net 356 billion won.

Investors pinned hopes that a Biden presidency and Republican-controlled Senate would benefit local chip and battery suppliers.

"Investor sentiment grew aggressive amid easing uncertainties over the U.S. presidential election," Yuanta Securities Korea analyst Cho Byung-hyun said.

In Seoul, large caps closed mixed with battery makers and renewable energy stocks leading the advance.

Market bellwether Samsung Electronics added 0.17 percent to 60,200 won, while No. 2 chipmaker SK hynix shed 0.35 percent to 86,000 won.

Leading chemical maker LG Chem rose 1.94 percent to 734,000 won, and rechargeable battery maker Samsung SDI spiked 6.81 percent to 533,000 won.

Top pharmaceutical firm Samsung Biologics retreated 2.06 percent to 761,000 won, and Celltrion gained 2.7 percent to 285,000 won.

Internet portal giant Naver shed 1 percent to 298,500 won, while its rival Kakao edged up 0.27 percent to 371,500 won.

Hyundai Motor, the country's largest automaker, moved up 1.17 percent to 172,500 won, while top steelmaker POSCO advanced 2.63 percent to 234,000 won.

The Biden effect also continued to strengthen the Korean won against the U.S. greenback, attracting foreign stock money to local financial markets.

The president-elect has supported large-scale fiscal spending and stimulus policies that would weaken the U.S. dollar.

The local currency closed at 1,113.9 won per dollar, up 6.5 won from the previous session's close.


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