North news, U.S. stocks provide boost to markets
Korean stock markets closed significantly higher yesterday, lifted by strong performance in U.S. markets and the upbeat news regarding North Korea.The main Kospi added 17.66 points, or 1.3 percent, to 1,436.10.
“Together with the U.S. stock rallies and a deal on the North Korean nuclear issue, foreigners’ buying of financial shares boosted investor sentiment,” said Kim Hak-gyun, an analyst at Korea Investment & Securities.
The Dow Jones industrial average rose 0.8 percent, its biggest rally this year, and the Nasdaq composite index advanced 0.4 percent.
Samsung Electronics, a blue chip technology stock, and Hynix Semiconductor, the world’s second-largest chip manufacturer, staged a technical rebound from recent drops, Mr. Kim said.
Samsung Electronics rose 0.9 percent to 567,000 won ($604), ending a two-day decline.
Financial shares led the charge into positive territory, with Korea Exchange’s announcement Tuesday that for the first time in eight years financial firms’ combined market capitalization surpassed that of IT companies. Kookmin Bank, the biggest lender, went up 1.9 percent, and Woori Financial Holdings, a leader in financial services, gained 5.3 percent. Hana Financial Group rose 6.6 percent.
Foreign buyers sent Kia Motors up 5.1 percent.
Shipbuilders were strong, with Hyundai Mipo adding 3.9 percent on reports that cost-cutting will boost its bottom line. Samsung Heavy Industries gained 2 percent after announcing a $400 million order from a European firm to build an offshore facility.
Trading volume was 206.2 million shares worth 3.2 trillion won changing hands. Winners beat losers, 408 to 213.
The Kosdaq finished at 602.78, up 6.07 points, or 1 percent. Winners outpaced losers 511 to 372. Volume was 586 million shares worth 1.8 trillion won.
By Hwang Young-jin Staff Writer [yhwang@joongang.co.kr]
with the Korea JoongAng Daily
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