The dealing room of Hana Bank in Seoul, Tuesday / Yonhap
Korean stocks rebounded more than 5 percent Tuesday after suffering a sharp decline the previous session, as investors hunted bargains amid eased concerns over the U.S.-Iran conflict. The local currency gained sharply against the greenback.
The Korea Composite Stock Price Index (KOSPI) moved up 280.72 points, or 5.35 percent, to close at 5,532.59.
Trade volume was heavy at 913 million shares worth 28.4 trillion won ($19 billion), with gainers far outpacing losers 753 to 146.
Individual investors sold a net 1.8 trillion won, while foreigners bought a net 1 trillion won. Institutions purchased a net 847 billion won.
The sharp gains came after investors scooped up bargains following the previous session's near 6 percent plunge after news reports said U.S. President Donald Trump remarked the war with Iran was "very complete," which led to a sharp decline in global crude prices.
During the morning session, program trading on the main bourse was suspended for five minutes. A sidecar is triggered by the Korea Exchange (KRX) when the KOSPI 200 futures index moves 5 percent or more for at least one minute.
The dealing room of Hana Bank in Seoul, Tuesday / Yonhap
"Seoul shares recouped earlier losses on expectations of easing war-related risks and a sharp decline in crude prices," Han Ji-young, a researcher at Kiwoom Securities, said.
"The market is experiencing unprecedented volatility. Even if shares surge today, they could undergo a correction in the following session before shooting up again the day after," Han added.
Source: Korea Times News
