Investors run market up before Chuseok holiday
The Korean stock market maintained upward momentum for a third consecutive day yesterday. The benchmark Kospi advanced 10.29 points, or 0.5 percent, to 1,919.26. It was the final trading day ahead of the three-day Chuseok (Korean Thanksgiving) holiday, but investors beat the temptation to sell for marginal gains.“Individual investors led buying today,” said Cho Yun-nam, an analyst with Daishin Securities, “on growing sentiment that the global credit crunch triggered by the U.S. subprime mortgage loan crisis might be over.”
Sentiment stayed positive even after a remark by Fed Chairman Ben Bernanke said the worst is still to come in the U.S. housing market in a speech to a U.S. congressional committee.
“Investors here took it [Bernanke’s remark] as an explanation of why he had to lower the interest rate,” said Soh Min-jae, an analyst at Korea Investment and Securities.
Hyundai Heavy Industries, the world’s largest shipbuilder, led major blue chip rallies, jumping 5.8 percent to continue to its highest-ever close ― 439,000 won ($478). Posco, the nation’s largest steelmaker, rose 0.1 percent, maintaining the highest price on the index at 671,000 won.
Lenders and information technology firms were among retreating industries. Kookmin Bank, Korea’s largest lender, lost 3.4 percent, and No. 2 Shinhan Financial Group slid 0.5 percent.
Samsung Electronics declined 2.2 percent, to 534,000 won. Hynix Semiconductor, on the other hand, went up 1.2 percent.
Trading volume was 434.5 million shares, worth 6.1 trillion won. Gainers edged losers, 414 to 374.
The junior Kosdaq inched up 6.45 points, or 0.8 percent, to close at 788.41, even though decliners outpaced advancers, 496 to 442.
Trading volume was 611.1 million shares, worth 2.0 trillion won.
By Moon Gwang-lip Staff Writer [joe@joongang.co.kr]
with the Korea JoongAng Daily
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