Fed reassurances send Kospi higher for 3rd day
The Korean stock market rose for the third consecutive day yesterday, thanks in part to signals from the U.S. Federal Reserve that it will take further action to rein in global concerns over U.S. subprime mortgage woes if necessary.The main Kospi index rose 23.32 points, or 1.3 percent, closing at 1759.50.
Federal Reserve Chairman Ben Bernanke said on Tuesday, American time, he’s prepared to use all the tools he has at his disposal to address the credit crisis in the American financial system, according to Sen. Chris Dodd, chairman of the Senate Banking Committee.
Shim Jae-youb, an analyst with Meritz Securities, said, however, the market is still in the woods.
“Bernanke’s remark seems to have assured some investors, but we need more time before saying the crisis is over.”
Eighty out of 100 large cap shares in the market rose including IT giant Samsung Electronics, which edged up 0.3 percent to 594,000 won ($629.05). Hynix Semiconductor rose 2.2 percent.
Posco, the nation’s largest steelmaker, rose 2.6 percent, and leading mobile service provider SK Telecom rose 1.3 percent. The nation’s largest lender, Kookmin Bank, retreated 0.7 percent.
Institutional and retail investors bought offsetting sales by foreign investors, who dumped shares for the eighth consecutive business day. By industry, insurance companies recorded the highest percentage increase, rising 3.4 percent. Brokerage firms and medical equipment makers followed, both with 2.7 percent.
Volume totaled 397 million shares, worth 5 trillion won. Gainers beat losers, 595 to 200.
The tech-heavy Kosdaq rose 13.55 points, or 1.9 percent, to 741.43. Volume amounted to 817.9 million shares worth 2.5 trillion won. Winners outnumbered losers, 625 to 315.
The won lost 0.6 won to end at 944.1 won against the dollar.
By Moon Gwang-lip Staff Writer [joe@joongang.co.kr]
with the Korea JoongAng Daily
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