Kospi flies on Buffett’s comments on Korea
Korean stocks surged yesterday, propped up by expectations for an additional interest cut by the U.S. Fed later this month and by remarks from renowned global stock investor Warren Buffett. Buffett visited Korea yesterday and said the Korean stock market has bright growth potential. The main Kospi shot up 43.39 points, or 2.2 percent, to end at 1,976.75.“In overnight trading, U.S. stocks started significantly lower, but pared much of their losses later in the day, giving local investors relief and hope that the market might restart its advance,” Lee Jung-min, an analyst at Korean Investment and Securities, said. “Institutions helped pull the index higher by snapping up China-related shares such as steel makers and shipyards.”
Despite the rally, however, Samsung Electronics, the blue chip with the largest market value, lost 1.2 percent to 507,000 won ($553). Top steel maker Posco soared 4.2 percent, and the world’s largest shipbuilder, Hyundai Heavy Industries, advanced 5.5 percent. Doosan Heavy Industries and Construction jumped 14.3 percent on upbeat prospects for the third-quarter earnings results. SK Energy, an oil refining unit of SK Group, climbed 9.3 percent. Shinsegae advanced 5.1 percent as it is one of the “value” companies that Buffett had previously said he was interested in. Kia Motors also leapt 14.9 percent, near the daily limit, as Buffett said he used to own shares in the automaker.
Hynix Semiconductor plunged 5.4 percent following its worse-than-expected third-quarter earnings.
Traded volume totaled 448.2 million shares worth 8 trillion won. Advancers beat decliners, 413 to 390.
The junior Kosdaq closed at 793.7, up 11.91 points, or 1.5 percent. Losing shares outnumbered winners, 546 to 401. Total traded volume stood at 465.7 million shares valued at 2.2 trillion won.
By Seo Ji-eun Staff Writer [spring@joongang.co.kr]
with the Korea JoongAng Daily
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