Kospi up for 2nd day as bargains abound
The Korean stock market gained again following Wednesday’s rebound, after the previous two-day plunge. The benchmark Kospi rose 34.58 points, or 2.1 percent. It ended the day at 1,663.00 as U.S. stocks had one of their biggest rallies in two months and investors went bargain hunting for tech and other blue chip shares.“The index got off to a strong start with gains in the U.S. markets improving investor sentiment, but lost some of those earlier gains later on with lingering concerns over global economic woes,” said Park So-yeon, an analyst at Korea Investment and Securities.
The gain was aided by Vice Finance Minister Kim Seok-dong’s Wednesday announcement that the government will ask funds to buy stocks ahead of schedule. Analysts, however, say that it will take time for the policy’s effect to kick in.
The rise was led by blue chips. Samsung Electronics, Korea’s largest exporter, gained 3 percent, settling at 556,000 won ($583). Rival chip giant Hynix Semiconductor climbed 3.2 percent. LG Electronics gained 2.8 percent.
Top shipmaker Hyundai Heavy Industries rose 3 percent and Daewoo Shipbuilding and Marine Engineering jumped 6 percent.
Hyundai Motor, Korea’s top automaker, increased 2.6 percent, on doubled fourth-quarter operating profit on-year. Its affiliate Kia Motors rose 4.3 percent.
While most lenders gained, including leading lender Kookmin Bank with a 1.1 percent rise, Shinhan slipped slightly, with a 0.8 percent decline.
Telecoms were among the few losers yesterday with SK Telecom and KT both falling: 2.2 percent and 2 percent, respectively.
Total traded volume was 265.3 million shares, valued at 5.3 trillion won. Winners outnumbered losers, 651 to 172.
The secondary Kosdaq gained 19 points, or 3.1 percent, to close at 638.98. Trade volume was 524.1 million shares worth 1.5 trillion won.
By Cho Jae-eun Staff Reporter [jainnie@joongang.co.kr]
with the Korea JoongAng Daily
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