Seoul shares soar over 1.5% on bargain hunting, eased political uncertainties

Hana Bank's dealing room in Seoul / Yonhap

Korean stocks rebounded sharply by rising more than 1.5 percent Tuesday to snap a three-session losing streak on bargain hunting and eased political uncertainties. The local currency rose against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) added 40.27 points, or 1.62 percent, to close at 2,521.39, rebounding from a 3 percent plunge the previous day. The index had fallen for three straight sessions from Thursday.

Trade volume was slim at 450.3 million shares worth 6.9 trillion won ($4.69 billion), with gainers beating decliners 712 to 182.

Institutions and individuals led the uptick, purchasing a net 180.9 billion won and 86.1 billion won, respectively. Foreigners sold a net 389.8 billion won.

Analysts noted that investors engaged in bargain hunting, driving the index higher after the recent losses.

Additionally, investors are relieved with the Constitutional Court's announcement that it will deliver the long-awaited ruling on the impeachment of President Yoon Suk Yeol this Friday.

Major shares ended in positive territory.

Tech giant Samsung Electronics gained 1.73 percent to 58,800 won, and SK hynix rose 3.3 percent to 197,000 won.

Top carmaker Hyundai Motor increased 0.71 percent to 198,600 won and its sister Kia mounted 0.98 percent to 93,200 won.

Kakao, the operator of top mobile chat app KakaoTalk, jumped 7.93 percent to 42,200 won, and major game publisher NCSOFT advanced 1.34 percent to 151,400 won.

Leading cosmetics maker Amorepacific vaulted 4.44 percent to 105,900 won, and Hanwha Aerospace soared 7.34 percent to 673,000 won as the company announced its executives have purchased 9 billion won worth of treasury shares.

On the other hand, battery shares remained weak as industry leader LG Energy Solution fell 1.94 percent to 328,000 won and POSCO Future M retreated 0.91 percent to 119,200 won.

The local currency was trading at 1,471.9 won against the greenback at 3:30 p.m., up 1 won from the previous session.

Bond prices, which move inversely to yields, ended mixed. The yield on three-year Treasurys added 1.2 basis points to 2.581 percent, while the return on the benchmark five-year government bonds dropped 1.4 basis points to end at 2.659 percent. (Yonhap)