Securities firms in lead as markets bounce back
The local stock market rebounded by record margins yesterday amid growing hope that the discount rate cut by the U.S. Federal Reserve Board last Friday will appease global concerns over a credit crunch triggered by U.S. subprime mortgage woes. The benchmark Kospi rose by 93.20 points to 1,731.27.“The FRB [Federal Reserve Board] intervention is easing concern over the credit crunch, and the investment sentiment in Korea is likely to improve gradually,” said So Jae-yong, an analyst at Hana Daetoo Securities. “But, it will take some time to rein in the concern completely. The FRB needs to continuously send the signal that it is willing to intervene in the market.”
By industry, securities firms recorded the biggest hike at 12.8 percent, followed by insurance firms with 9 percent.
Top brokerage company Samsung Securities rose by its daily limit of 15 percent to 75,200 won ($79.19).
Hyundai Securities jumped by 15 percent to 25,750 won, while Woori Investment and Securities rose by 15 percent to 26,150 won.
Daehan Fire and Marine Insurance rose 15 percent to 5,290 won, and Meritz Fire Insurance rose 14.92 percent to 8,320 won.
Market bellwether Samsung Electronics jumped 3.2 percent to close at 590,000 won. Other blue chip shares also took steep jumps. Posco, the nation’s largest steelmaker, rose 7.6 percent to 479,000 won and Hyundai Steel rose 7.4 percent to 58,000 won.
Korea Electric Power Corporation increased 1.5 percent to 40,750 won, while Kookmin Bank rose 3.1 percent to 74,100 won.
Trade volume totaled 399.6 million shares worth 5.7 trillion won. Winners outpaced losers, 780 to 46.
The Kosdaq rose by 48.11 points, 7.1 percent, to end at 721.59. Volume amounted to 567 million shares worth 1.9 trillion won. Winners outnumbered losers, 906 to 80.
By Moon Gwang-lip Staff Writer [joe@joongang.co.kr]
with the Korea JoongAng Daily
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