Markets climb on news from U.S. and at home

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Markets climb on news from U.S. and at home

The main stock market finished above 1,900 points on news of a South-North Korean summit later this month and a bullish U.S. stock market. The Kospi moved up 2.34 percent, or 43.59 points, to close at 1,903.41.
Shares related to economic cooperation between South and North Korea advanced beginning early in the morning. The Federal Reserve’s decision to freeze interest rates boosted stock markets throughout Asia. Foreign investors, however, sold stocks for the 18th-straight trading day. Individual investors were also sellers.
All sectors advanced, especially, textile, chemical, machinery, retail, insurance, shipping and food and beverage shares.
Hyundai Group shares were strong as its affiliates are expected to benefit from the summit. Korea Electric Power added 2.7 percent as it was also seen as a summit beneficiary. It also signed a memorandum of understanding with General Electric to collaborate in electric power projects abroad.
Shinwon, an apparel maker that is running a factory in the Kaesong Industrial Complex, jumped 9.3 percent. Seondo Electric and Kwangmyung Electric Engineering, both electricity supply equipment makers, hit the daily ceiling of 15 percent.
Among other potential beneficiaries, Hyundai Engineering and Construction rose 1.3 percent, Daerim Industrial increased 4.8 percent, Namhae Chemical leaped 6.4 percent and Kyungnong skyrocketed 9.8 percent.
“Investors may take an interest in those shares, but the economic cooperation between the two Koreas will take time to produce any results, so these are expected to be no more than short-term gains,” said Min Sang-il, an analyst at Hanwha Securities. Gainers overwhelmed losers, 593 to 184.
The tech-heavy Kosdaq market ended at 807.96, an increase of 7.13 points or 0.89 percent. Advancers led decliners, 502 to 431.


By Limb Jae-un Staff Writer [jbiz91@joongang.co.kr]
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