Talk of Fed rate cut raises Kospi shares
Korean stocks gained yesterday after Federal Reserve Vice Chairman Donald Kohn raised expectations the central bank will cut interest rates, easing concern a U.S. slowdown will curb global growth. The Kospi index climbed 42.87 points, or 2.3 percent, closing at 1,877.56. The Kosdaq added 1.6 percent to 734.92. About 342 million shares valued at 6.4 trillion won ($6.9 billion) changed hands on the Korea stock exchange, 11 percent fewer than the three-month daily average of 7.1 trillion won.“Expectations that there will be another rate cut are boosting Korean and Asian stock markets,” said Kim Young-il, an analyst at Hanwha Investment Trust Management. “Overall investor sentiment is being lifted.”
Samsung Electronics, Korea’s biggest company by market value and the largest exporter, climbed 23,000 won, or 4.2 percent, to 567,000. Hyundai Heavy Industries, the world’s biggest shipbuilder, rose 22,000 won, or 5 percent, to 465,000.
Kookmin Bank, the biggest Korean lender, gained 2,600 won, or 4.1 percent, to 66,200. Shinhan Financial Group climbed 600 won, or 1.2 percent, to 50,900. The Korea Banking Index, tracking Kookmin and six others, rose 3.4 percent to 318.61.
Oil-dependent companies gained. Crude oil fell 4 percent to $90.62 a barrel on Wednesday in New York, the lowest close in a month. It was recently at $92.22 a barrel in after-hours trading. Korea Electric Power, which supplies almost all the power in the country, rose 700 won, or 1.9 percent, to 38,500. Asiana Airlines, the country’s second-largest carrier, rose 250 won, or 2.9 percent, to 9,000. Korean Air Lines, Korea’s largest airline, gained 1,800 won, or 2.4 percent, to 78,000.
Hanarotelecom, the country’s second-biggest provider of high-speed Internet access, climbed 450 won, or 3.9 percent, to 12,100.
LG.Philips LCD rose 900 won, or 1.7 percent, to 52,500.
Bloomberg
with the Korea JoongAng Daily
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