Kospi back in the black despite declines in U.S.

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Kospi back in the black despite declines in U.S.

The local stock market bounced back yesterday with the help of institutional investors, analysts said. The main index rose 20.77 points, or 1.14 percent, closing at 1,849.26 despite declines in the U.S. market. Foreign investors unloaded more than 400 billion won ($430 million) worth of stocks yesterday.
“In spite of the fact that the United States is the origin of the subprime mortgage crisis, for the last two weeks money has been flowing out of emerging market funds into the U.S.-based funds,” said Huh Jae-hwan, an economist at Tongyang Investment Bank. “In risky times, investors certainly prefer more secure assets.”
Positive factors included the news of an intervention in the financial market by the U.S. Federal Reserve Bank and the European Central Bank, and the slower decline of the U.S. stock market.
Huh added that the exodus of investments from emerging Asian markets such as Korea slowed yesterday, except for Taiwan and Thailand.
At the main exchange, electronics, steel, medical, retail, chemical and bank shares advanced while insurance, shipping, securities, construction and machinery issues declined. Information technology shares were strong. Samsung Electronics added 1.7 percent, Hynix Semiconductor jumped 4.6 percent, LG Philips LCD climbed 3.6 percent, LG Electronics rose 2.8 percent and Samsung Electro-mechanics gained 2.3 percent.
Steel shares were also strong. Posco climbed 3.9 percent, Dongkuk Steel Mill rose 2.7 percent and Hyundai Hysco added 1.7 percent. Hanjin Shipping sank 6.1 percent amid concerns of declining performance. Shinsegae soared 6.4 percent with the expectations of improved earnings and share purchases by major shareholders. Still, losers led gainers, 411 to 366.
The secondary Kosdaq market ended 0.28 percent lower, down 2.21 points to 786.20. Decliners led climbers, 510 to 437.

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