U.S. market rallies, and the Kospi follows suit
The local stock market rebounded yesterday due to a strong rally in the U.S. market.The benchmark Kospi index gained 15.51 points, or 0.9 percent, to finish at 1,841.70. On Wednesday, U.S. time, the Dow Jones industrial average surged 247.44 points, or 1.9 percent, a day after it plunged by 280.
“The local market is not reacting as strongly to the U.S. market as other Asian markets, but it is moving based on the performance on Wall Street,” said Moon Sung-kang, an analyst with Korea Investment and Securities.
“In days to come, when we expect to see reports of various industrial performances in the U.S. for August and the Federal Reserve’s decision about U.S. interest rates, the local market will be more closely responding to the U.S. market.”
The majority of blue chips gained, capped by industrial leader Samsung Electronics which saw a 10,000 won ($10.60) increase, or 0.8 percent, to 572,000 won. The chipmaker’s five-day rebound was mostly due to the strong performance of U.S. technology firms Wednesday, according to Moon.
Hynix, the country’s second-largest semiconductor maker, also rose 2.6 percent.
Leading steelmaker Posco increased 0.7 percent, and Kookmin Bank, the nation’s largest lender, rose 1.9 percent.
Mobile service providers led other industries in the gains with a 2.17 increase with leading SK Telecom and No. 2 KTF gaining 0.5 percent and 1.4 percent, respectively.
The retail industry trailed at 2.14 percent.
Volume totaled 418 million shares, worth 5.8 trillion won. Gainers outnumbered losers, 522 to 247.
The junior Kosdaq advanced 6.96 points, or 0.9 percent, to 765.60. Volume amounted to 552 million shares worth 1.8 trillion won. Winners outpaced losers, 610 to 315.
By Moon Gwang-lip Staff Writer [joe@joongang.co.kr]
with the Korea JoongAng Daily
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