Seoul: Shares gain for third straight week on vaccine cheer

[SEOUL] South Korean shares closed higher on Friday, gaining for a third straight week as optimism around potential Covid-19 vaccine breakthroughs offset concerns over rising cases in South Korea.

The benchmark Kospi rose 6.08 points, or 0.24 per cent, to 2,553.50. For the week, the index gained 2.4 per cent.

A US official said Covid-19 vaccines from Pfizer and Moderna could be ready for US authorisation and distribution within weeks, strengthening hopes of a recovery from the pandemic-induced economic slump.

AstraZeneca and Oxford University also said their potential Covid-19 vaccine produced a strong immune response in older adults.

Still, sentiment took a hit after South Korea's prime minister warned of strict Covid-19 curbs returning if the current level of infections was not contained soon and pleaded with the public to avoid social gathering.

Also capping gains was Thursday's call by US Treasury Secretary Steven Mnuchin to end pandemic relief for struggling businesses.

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Foreigners were net buyers of 102.3 billion won (S$123.1 million) worth of shares on the main board. Foreigners were net buyers for the 12th straight session, their longest buying spree since January 2017.

The trading volume during the session in the Kospi index was 1,115.84 million shares. Of the total traded issues of 905, the number of advancing shares was 549.

REUTERS