Kospi bounces back amid bargain hunting
Korean stocks rose nearly 1.4 percent yesterday as investors snapped up beaten-down tech blue chips like Samsung Electronics on expectations for rising key chip prices, analysts said.The benchmark Kospi rose 24.65 points, or 1.4 percent, to 1,825.23, the first gain in seven sessions.
“Tech stocks, led by market leader Samsung Electronics, gained strength on hopes for rising chip prices and bargain hunting,” said Lee Sun-yup, an analyst at Goodmorning Shinhan Securities.
“But as inflation fears still remain, the market may find it difficult to maintain the upturn in the short term.”
Tech shares gained ground after falling sharply in the previous session on rumors that Nokia Corporation, the world’s largest mobile phone maker, may cut its handset prices.
Tech bellwether Samsung Electronics gained 3.4 percent to 702,000 won ($676), and chip giant Hynix Semiconductor advanced 2.9 percent.
Samsung’s rival, LG Electronics, lost 1.1 percent.
Top steelmaker Posco gained 1.8 percent, while the world’s No. 1 shipbuilder Hyundai Heavy Industries remained flat. The nation’s largest automaker Hyundai Motor retreated 0.9 percent.
Top refiner SK Energy surged a whopping 8.4 percent, riding the wave of skyrocketing oil prices, and No. 1 carrier Korean Air gained 3.8 percent, rebounding from past falls.
Fixed-line telephony and Internet giant KT jumped 4.9 percent on renewed expectations for its possible merger with No. 2 mobile phone operator KTF.
Kyobo Securities added 5.4 percent after saying that its largest shareholder is mulling selling the brokerage house after mid-June.
Volume was moderate at 255.7 million shares worth 4.6 trillion won with gainers outpacing losers, 422 to 356.
Reversing earlier losses, the local currency closed at 1,037.7 won against the dollar, up 10.8 won from Monday’s close, after Choi Jong-ku, a senior official at the Finance Ministry, expressed concerns that although the won’s recent fall came amid soaring oil prices, there seems to be herd behavior in the foreign exchange market, dealers said.
Yonhap
with the Korea JoongAng Daily
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