Bargain hunters drive Kospi past 1,900 mark
Seoul markets began the week on an upbeat note, rising sharply yesterday as retail and institutional investors hunted for beaten-down big-cap shares such as Samsung Electronics and Hyundai Heavy Industries. The benchmark Kospi soared 23.49 points, or 1.3 percent, to 1,906.71.“After plummeting late last week, the market bounced back on bargain hunting by institutions,” said Kim Jung-hyun, an analyst at Goodmorning Shinhan Securities.
Foreigners continued selling for the 11th trading session, but were outpaced by purchases made from institutional and retail investors.
Most areas were up except for banking shares, which were hurt by a foreign investor selling spree and lackluster second-quarter earnings. Kookmin Bank fell 1.4 percent after reporting a poor first half. No. 2 Shinhan Financial Group dropped 1.8 percent. Brokerage shares, however, were strong, with major securities shares rising between 2 and 5 percent on average. Speculation about Hyundai Securities’ possible takeover of Nonghyup boosted shares by 8.4 percent and Nonghyup’s affiliate, NH Investment Securities, hit the daily limit.
Technology shares were strong, led by Samsung Electronics, which gained 2.4 percent. LG Electronics added 1.3 percent to 610,000 won ($661.70), and Hynix Semiconductor rose by 1.7 percent on expectations of improved third-quarter earnings.
Hyundai Heavy Industries, gained 3 percent and the world’s No. 3 steelmaker, Posco, rose 2.3 percent.
Advancers led decliners 475 to 291. Trade volume was 378.8 million shares worth 6.6 trillion won.
The Kosdaq rose 2.13 points, or 0.3 percent, before closing at 794.19. NHN dropped 2.2 percent, but Daum rose 1.9 percent. Winners beat losers, 554 to 384. Trade volume was 445.5 million shares worth 1.7 trillion won.
By Wohn Dong-hee Staff Writer [wohn@joongang.co.kr]
with the Korea JoongAng Daily
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