After ups and downs, Kospi closes higher
Korea’s Kospi rose after changing directions 24 times yesterday, according to exchange data.The Kospi index advanced 9.47 points, or 0.5 percent, closing at 1,932.89.
“Among tech stocks, display and appliance makers are showing good performances,” said Kim Jun-ki, an analyst at Hanwha Investment Trust Management. “Global markets may be unstable, but people keep buying the companies that have firm fundamentals and earnings improvement.”
About 390 million shares valued at 7.3 trillion won ($7.9 billion) changed hands on the Korean stock exchange, in line with the three-month daily average.
Telecommunication companies rose, led by SK Telecom, after Woori Investment & Securities said the government will not oppose a possible takeover of Hanarotelecom.
SK Telecom, the biggest of Korea’s three wireless operators, gained 2.1 percent. Hanaro, the nation’s second-largest provider of high-speed Internet access, climbed 6.9 percent.
LG Electronics, Asia’s second-largest handset maker, added 3.3 percent. JPMorgan raised its price estimate by 17 percent in a report. Next year’s earnings-per-share will surge 140 percent, while investors “appear to underestimate” the value of the company’s appliance business, wrote analysts including JJ Park.
KT, Korea’s largest phone and Internet company, rose 1.8 percent. KT Freetel, the nation’s second-largest mobile-phone operator, rose 10 percent. That’s the highest since July 2002.
Bulk shippers also rose. STX Pan Ocean, the biggest Korean bulk carrier, jumped 15 percent, the biggest gain since Oct. 25.
Korea Line, the second-largest by market value, gained 13 percent.
The Kosdaq gained 0.3 percent to 756.59. Kospi 200 futures expiring in December climbed 0.3 percent, while the underlying index rose 0.3 percent to 244.73.
Bloomberg
with the Korea JoongAng Daily
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