U.S. trade deal prompts 7-point rise on Kospi
Korean stocks closed higher in April’s first trading session yesterday, as investors bought auto and blue chip shares on optimism that Korea’s free trade pact with the U.S. would boost the export-reliant economy. The Kospi gained 6.98 points, or 0.5 percent, to 1,459.53.“With a free trade agreement clinched [in the early afternoon], investors became more active in buying stocks they expect will benefit from the economic deal with one of the world’s largest economies,” said Kim Yong-gak, an analyst at Hyundai Securities.
The free trade pact could push up bilateral trade by as much as 20 percent. In 2006, two-way trade totaled $74 billion with Korea enjoying a surplus of $13 billion.
Blue chips were somewhat mixed, but most large-cap shares traded in positive territory. Samsung Electronics nudged up 0.5 percent to 568,000 won ($606), and display panel maker LG. Philips LCD gained 0.8 percent.
Auto shares also rose. Top automaker Hyundai Motor added 3.3 percent. Its affiliate Kia Motors rose 5.5 percent after a brokerage report forecast the U.S. economic accord would boost car exports.
Auto parts manufacturers also gained ground on expectations that free trade would help their businesses. Hyundai Autonet soared 12.8 percent, and Hyundai Mobis went up 2.7 percent.
Shipbuilders also enjoyed brisk trading. No. 1 shipyard Hyundai Heavy Industries jumped 2.9 percent, Daewoo Shipbuilding and Marine Engineering gained 2.8 percent, and Samsung Heavy Industries picked up 0.4 percent.
Advances led declines 434 to 326. Volume was 297.1 million shares worth 3.4 trillion won.
The secondary Kosdaq rose 2.79 points, or 0.4 percent, to close at 651.78. NHN picked up 0.7 percent, Hanarotelecom, 3.2 percent, and Mega Study, 6.8 percent.
Advances edged out declines 493 to 411. Volume was 703.6 million shares worth 1.8 trillion won.
By Yoo Jee-ho Staff Writer [jeeho@joongang.co.kr]
with the Korea JoongAng Daily
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