Futures, options worries fail to halt market climb
The Korean stock market closed higher yesterday, overcoming concerns about futures and options contracts that expired today. The benchmark Kospi index rose 34.50 points, or 1.9 percent, to 1,848.02.“The pressure to rebound from yesterday’s fall was strong enough to offset the concern,” said Bae Sung-young, an analyst at Hyundai Securities.
Yesterday was a “triple witching day,” when stock index futures, stock index options and individual stock options all expired. This usually provokes program selling, resulting in price swings. On Wednesday, the Kospi closed down 33.84 points, or 1.8 percent, on program-based selling in part because of worries over negative economic data about the Chinese economy.
“The U.S. market held up well, encouraging local investors to continue to buy,” Bae said. “Strong performances in the shipbuilding and steel industries, which are riding on strong demand from China, were also a positive factor.”
The nation’s largest steelmaker, Posco, jumped 4.4 percent to 589,000 won ($632.30), while Hyundai Heavy Industries, a shipbuilder, advanced 2.9 percent.
Other blue chip shares also gained, with market bellwether Samsung Electronics rising 2,000 won ($2.14), or 0.4 percent, to 562,000 won.
LG.Philips LCD advanced 3.1 percent, and Kookmin Bank, the nation’s largest lender, rose 0.8 percent. Leading mobile service provider SK Telecom added 1.2 percent, while No. 2 KTF gained 2.3 percent. Hynix Semiconductor fell 2.9 percent.
Trade volume was moderate at 333 million shares worth 5.7 trillion won. Gaining shares outnumbered losers, 526 to 274.
The secondary Kosdaq market also declined. The index closed at 767.39, down 9.56 points or 1.3 percent. About 745 million shares worth 2 trillion won were traded. Winning shares led losers, 525 to 392.
By Moon Gwang-lip Staff Writer [joe@joongang.co.kr]
with the Korea JoongAng Daily
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