Optimistic report helps construction shares rise
The Korean stock markets rose for the third straight day on heavy foreign purchases of banking shares. The Kospi rose 4.81 points, or 0.3 percent, to end at 1,417.95.Samsung Electronics, Korea’s top listed firm by market value, lost 0.2 percent to close at 586,000 won ($626). Other techs fared well. Hynix Semiconductor, Asia’s second-largest computer chipmaker, climbed 1.7 percent and SK Telecom, Korea’s No. 1 wireless operator, gained 0.5 percent. LG.Phillips LCD rose 2 percent.
Banks gained as Fitch Ratings recently lifted its credit ratings on Kookmin Bank, Korea’s largest lender, and the No. 2 Shinhan Financial Group by one notch.
Daniel Baek, analyst at Woori Investment & Securities, said Korean banking shares “still have much room to rise,” since they are undervalued compared to other Asian banking shares.
Woori Finance Holdings, Korea’s third-largest financial firm, rose 0.2 percent, with the fourth-rated Hana Financial Group gaining 2.6 percent. The Industrial Bank of Korea climbed 1.6 percent. Building shares strengthened after Korea’s Construction Ministry predicted infrastructure construction projects in oil-producing nations in the Middle East would drive overseas contracts past this year’s target of $18 billion. Hyundai Engineering & Construction gained 1.3 percent, and Samsung Heavy Industries climbed 2.8 percent.
Advancers beat decliners, 426 to 332. Volume was 178.5 million shares, worth 3 trillion won.
The tech-laced Kosdaq rose 2.89 points, or 0.5 percent, to close at 594.61.
Megastudy, a producer of study aids for students, slid 3.4 percent after U.S. fund Gratham, Mayo, Van Otterloo reported it reduced its holdings in Megastudy from 5.6 to 4.2 percent. Trading volume was 525.6 million shares, worth 1.7 trillion won. Advancers outpaced decliners, 483 to 422.
By Jung Ha-won Staff Writer [hawon@joongang.co.kr]
with the Korea JoongAng Daily
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