News in China, U.S. raises local markets
Korean stocks closed higher yesterday as institutional investors scooped up shares following firmer overseas markets, analysts said.The benchmark Kospi gained 20.34 points, or 1.2 percent, to 1,697.44. Volume was moderate at 349.3 million shares worth 5 trillion won ($5.3 billion), with gainers outpacing losers, 463 to 320.
“Strong overseas markets like the United States and China helped send the Kospi higher. Foreign investors bought futures and institutions became net buyers, which supported the market,” said Kim Min-sung, an analyst at Bookook Securities.
But Kim said it may be too early to say that the Kospi will maintain a full-fledged upward trend as uncertainties persist ahead of the release of U.S. economic data and a rate review by the Bank of Korea.
The Kospi traded slightly higher on retail buying early in the day, but a report that China is mulling cutting taxes on securities trading helped the main index extend earlier gains.
Retail investors remained net sellers of stocks near the market closing.
Tech blue chips closed mixed. Flat-panel giant LG.Philips LCD added 3.7 percent to 47,600 won ($48.58) on hopes for strong first-quarter earnings, while consumer electronics maker LG Electronics closed down 0.5 percent at 110,000 won after trading higher.
Shippers traded in positive territory on a bright outlook for the industry.
Hanjin Shipping, the country’s largest shipper, jumped 7.2 percent to 38,500 won.
Power monopoly Korea Electric Power fell 1.3 percent to 31,050 won after the government said it plans to cut power rates.
The local currency finished at 949.6 won to the U.S. dollar, down 1.4 won from Wednesday’s close, as offshore investors snapped up the greenback, dealers said.
Bond prices, which move inversely to yields, fell. The return on three-year Treasuries rose 0.03 percentage point to 4.95 percent.
Yonhap
with the Korea JoongAng Daily
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