Anticipated rate cut by U.S. Fed raises markets
The Seoul stock market inched higher yesterday as investors expect the Federal Reserve to cut interest rates by half a percentage point when it meets Tuesday, U.S. time. The Kospi closed at 1,871.68, up 1.66 points, or 0.1 percent.Among other positive factors are a slight advance at the New York stock market on the previous trading day and a decline in international crude oil prices. The decision on whether to include Korea in the developed market category in the FTSE index, a benchmark used by European funds, will be made on Thursday.
Foreign investors and program-based selling pushed the index down by 16 points at one point during the day, but retail investors pushed it up.
“Amid several events including the Federal Reserve’s monetary policy meeting, investors are taking a wait-and-watch attitude,” said Lee Young-gon, an analyst at Hanwha Securities.
Machinery, banking, chemical, financial, steel, transportation equipment and retail stocks were strong. Among large cap stocks, Samsung Electronics shed 2 percent, ending at 545,000 won ($586.42), but Hynix Semiconductor climbed half a percent. Posco fell 0.2 percent and Korea Electric Power dropped 0.5 percent.
Among shipbuilding issues, Daewoo Shipbuilding and Marine Engineering jumped 4.3 percent, but Hyundai Heavy Industries declined 1.2 percent. Doosan Heavy Industries and Construction soared 5.1 percent. Shareholders of both LG Chemical and LG Petrochemical approved their merger, sending the two companies to record highs. LG Petrochemical rose 5.4 percent, and LG Chemical increased 3.6 percent. Decliners led advancers, 391 to 405.
The secondary Kosdaq market closed slightly higher, at 784.75, up 1.48 points, or 0.2 percent. Most Internet shares fell. NHN lost 1 percent and CJ Internet fell 3.2 percent. Losers led gainers, 505 to 432.
By Limb Jae-un Staff Writer [jbiz91@joongang.co.kr]
with the Korea JoongAng Daily
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