Seoul stocks up for 3rd day on US infrastructure plan

South Korean stocks advanced for the third straight session on Monday as investors weigh the $2.25 trillion infrastructure proposal in the United States. The Korean won fell against the US dollar.

After choppy trading, the benchmark Korea Composite Stock Price Index (KOSPI) rose 8.03 points, or 0.26 percent, to close at 3,120.83 points.

Trading volume was moderate at about 1.1 billion shares worth some 12.8 trillion won ($11.3 billion), with gainers outnumbering losers 511 to 343.

Foreigners bought a net 172 billion won, while institutions sold 384 billion won. Retail investors purchased a net 207 billion won.

The KOSPI advanced, backed by hopes for a global economic rebound from the massive US stimulus spending plan.

"Local investors seem to have reduced part of their holdings to take profits from the last week's gains on the US infrastructure investment plan," said Hana Financial Investment analyst Lee Young-gon.

"But they seemed to have refrained from big moves today, with stock exchanges closed in the US and China for holiday," he said.

Large caps closed mixed in Seoul.

Top cap Samsung Electronics added 0.71 percent to 85,400 won, and No. 2 chipmaker SK hynix advanced 1.42 percent to 143,000 won.

Top automaker Hyundai Motor edged up 0.21 percent ot 234,000 won, but internet portal operator Naver shed 0.66 percent to 377,000 won. Leading chemical firm LG Chem declined 1.33 percent to 817,000 won.

Pharmaceutical firm Samsung Biologics moved up 0.81 percent to 75,000 won, but Celltrion slumped 3.9 percent to 308,000 won.

The local currency closed at 1,127.7 won against the US dollar, down 0.2 won from the previous session's close.
 
Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys added 5.1 basis points to 1.202 percent, and the return on the benchmark five-year government bond rose 6.1 basis points to 1.636 percent. (Yonhap)