South Korea: Stocks recoup early losses on bargain hunting, China support plans

[SEOUL]  South Korean shares ended flat on Monday after heavy selling last week on the coronavirus outbreak.

The Seoul stock market's main KOSPI fell 0.13 point, or 0.01 per cent, to 2,118.88, after falling as much as 1.7 per cent in early trade.

Bargain hunting lifted heavyweights, while Chinese government measures to support the economy helped recoup early losses.

Chinese stock and commodity markets fell heavily on Monday as the death toll in China from the fast-spreading virus rose to 361 and investors retreated to safe-haven assets in the first trading session after an extended Lunar New Year break.

China's central bank said it will inject US$174 billion worth of liquidity into the markets via reverse repo operations on Monday. 

Foreigners were net sellers of US$258 million worth of shares on the main board, while local institutions and individual investors were net buyers.

South Korea's Finance Minister Hong Nam-ki said he would act to stabilise financial markets if herd-like behaviours are seen, noting he saw a lot of speculative demand moving its currency market. 

The KOSPI has fallen 3.59 per cent so far this year, and lost 2.4 per cent in the previous 30 trading sessions. 

The trading volume during the session in the KOSPI index was 827.17 million shares and, of the total traded issues of 906, the number of advancing shares was 296.

REUTERS