Kospi rises 1.19% as foreigners show optimism

The Kospi added 31.5 points, or 1.19 percent, to close at 2,680.26, with foreigners buying over 600 billion won.

Screens in Hana Bank's trading room in central Seoul show the Kospi closing at 2680.26 points on Monday, up 1.19 percent, or 31.50 points, from the previous trading session. [NEWS1]

Stocks rose more than 1 percent for the second straight session Monday on the back of a foreign buying spree, while the local currency increased slightly against the U.S. greenback.

The Kospi added 31.5 points, or 1.19 percent, to close at 2,680.26, following a 1.34 percent jump Friday.

Trade volume was slim at 413.7 million shares worth 9.6 trillion won ($7.2 billion), with gainers beating decliners 617 to 261.

Foreigners were net buyers with 607.6 billion won and institutions with a net 442.4 billion won, while individuals dumped a net 1 trillion won.

Foreigners are estimated to have snatched up some 6 trillion-won worth of local stocks so far this month.

Experts noted that foreign investors have pinned high hopes on the government's value-up programs to be announced next week, which will include measures to elevate the corporate value of underperforming stocks, or low price-to-book ratio (PBR) offerings, as part of the government's plans to tackle the undervaluation of the domestic stock market.

"Foreigners expect Korea will experience a rally as Japan and Taiwan have," Lee Jae-won, an analyst from Shinhan Securities, said.

Tech shares were among the biggest winners.

Samsung Electronics added 1.37 percent to reach 73,800 won, and SK hynix jumped 3.07 percent to 151,300 won.

SK Innovation advanced 1.42 percent to 128,900. LG Chem moved up 0.79 percent to 508,000 won.

Insurers also traded in positive territory, with Samsung Fire & Marine Insurance surging 4.44 percent to 317,500 won and Hyundai Marine & Fire Insurance climbing 2.47 percent to 35,300 won.

Korea Aerospace Industries rose 4.09 percent to 53,400 won after a deal with a German arms company, and Hanwha Aerospace also soared 7.5 percent to 151,900 won.

LG Energy Solution retreated 3.05 percent to 397,500 won. Hyundai Motor stayed unchanged at 252,500 won.

The local currency closed at 1,335.2 won against the greenback, down 0.2 won from the previous session's close.

The Kosdaq rose 0.87 points, or 0.1 percent, to close at 858.47.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds fell 0.9 basis points to 3.396 percent, and the return on the U.S.' benchmark 10-year government bonds rose 5.7 basis points to 4.282 percent.

BY LEE SOO-JUNG, YONHAP [lee.soojung1@joongang.co.kr]