[MARKET]High Q1 expectations lift prices of steel, tech shares
Korean stocks finished substantially higher yesterday as institutions picked up steel, tech and other blue-chip shares, analysts said. The local currency fell against the greenback.The benchmark Kospi rose 21.44 points, or 1.2 percent, to 1,763.63. Volume was thin at 248.8 million shares worth 5.8 trillion won ($6 billion) with gainers outpacing losers, 421 to 363.
“Improved investor sentiment seems to be continuing, mostly on prospects for upcoming quarterly earnings announcements of steel and tech companies,” said Lee Kyung-soo, an analyst at Daewoo Securities.
Steel and tech blue chips led the overall gains. Top steelmaker Posco advanced 6.2 percent to 508,000 won after it announced an interest in buying Daewoo Shipbuilding and Marine Engineering, the world’s No. 2 shipyard. LG Electronics rose 2.7 percent to 134,000 won.
Shipbuilders and energy stocks were also buoyed. Hyundai Heavy Industries, the world’s No. 1 shipbuilder, climbed 4.2 percent to 387,000 won, and top refiner SK Energy added 1.8 percent to finish at 145,500 won.
SK Energy, Korea’s largest refinery, gained 4,000 won, or 3.9 percent, to 106,000. GS Holdings, which operates the second-biggest refinery in Korea, advanced 1,500 won, or 3.8 percent, to 41,000. Both stocks rose to the highest since March 12.
Insurers, however, underwent a correction following steep gains in the previous session. Leading nonlife insurer Samsung Fire and Marine shed 0.2 percent to end at 211,500 won and Hyundai Marine and Fire fell 1.2 percent to 20,250 won.
The secondary Kosdaq market advanced 1.34 points, or 0.2 percent, ending at 649.26.
The local currency finished at 975.6 won against the dollar, down 0.9 won from Wednesday’s close, as offshore investors snapped up the greenback, dealers said.
The return on three-year Treasuries rose 0.04 percentage point to 5.14 percent.
Yonhap
with the Korea JoongAng Daily
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