Stocks Continue to Jump Up as Omicron Fears are Eased

This is a hopeful sign for the Korean economy in general.

Stocks finished higher for the second straight day on Wednesday, boosted by advances in chipmakers and a reduction in concerns over the Omicron version. The won increased in value in relation to the dollar.

The benchmark Kospi index rose 9.45 points, or 0.32 percent, to close at 2,984.48 points, an increase of 9.45 points. The volume of trading was mild, with around 453 million shares worth approximately 8.6 trillion won ($7.2 billion) changing hands. Gainers outnumbered losers by a 486 to 357 margin.

Foreigners made a net buy of 311 billion won, while institutions made a purchase of 176 billion won, and regular investors made a net sale of 502 billion won. The market started off to a strong start, after overnight gains on Wall Street as concerns about the impact of the omicron variant on the global economy were eased, according to the CME Group.

The Kospi, on the other hand, gave up some of its gains later in the day when ordinary investors sold local equities in order to lock in their profits.

After rising 2.4 percent overnight, the tech-heavy Nasdaq composite and the Dow Jones Industrial Average gained 1.6 percent, partly on the back of hopes that Omicron strain symptoms will be less severe than previously thought.

"Investors appear to be positive about chip performance [in the future], but not as enthusiastic about the other industries," said Huh Jae-hwan, an analyst at Eugene Investment Securities.

A 1.66 percent increase in the price of Samsung Electronics to 79,400 won, and a 2.01 percent increase in the price of SK Hynix to 127,000 won. Kao Corporation's stock price remained constant at 114,500 won despite a 0.93 percent increase in Naver's share price to 378,500 won.

Hyundai Motor rose 0.73 percent to 206,500 won, while LG Chem lost 2.65 percent to 625,000 won. LG Chem is a Korean chemical company. Samsung Biologics lost 3.01 percent of its value, falling to 901,000 won, while Celltrion lost 2.2 percent of its value, falling to 200,500 won. SK Innovation, a battery manufacturer, saw its stock fall 1.39 percent to 212,500 won. The Kosdaq finished the day up 3.53 points, or 0.35 percent, at 1,000.13 points.

The local currency was trading at 1,192 won per dollar, down 0.9 won from the previous session's finish. The dollar was trading at 1,192 won per dollar.

Bond prices, which move in the opposite direction of yields, ended the day lower. A 4 basis point increase in the yield on three-year government bonds brought the yield to 1.759 percent, while a 3.3 basis point increase in the yield on the benchmark 10-year government bond brought the yield to 1.45 percent.

Krees DG

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