Rising Asian markets give Kospi small lift
Korean stocks edged up yesterday as investors snapped up steel and telecommunication shares on the back of rising Asian markets, analysts said.The benchmark Korea Composite Stock Price Index rose 1.78 points, or 0.11 percent, to 1,579.72. Volume was thin at 244.4 million shares worth 4.05 trillion won ($3.89 billion), but losers outnumbered gainers, 480 to 307.
“Although the Kospi inched up, market sentiment was still fragile amid uncertainty over oil prices,” said Rhoo Yong-seok, an analyst at Hyundai Securities. “Investors will likely await comments by G8 leaders on oil prices and the U.S. dollar.”
The Seoul bourse traded lower in the morning session, but reversed course after Asian markets like those in China and Japan extended their gains.
Market sentiment remains weak on inflation risks and a selling spree by foreign investors, analysts said. The local stock market is likely to be affected by local firms’ earnings reports this week, they added.
Korea’s listed companies usually unveil their second-quarter results starting from mid-July. LG Display, the world’s second-largest maker of liquid crystal display panels, plans to announce its earnings on Wednesday.
Foreign investors unloaded a net 117.7 billion won worth of local stocks. They continued their selling spree of a net 6.04 trillion won for the 21st straight session, marking the second-longest selling streak.
Top steelmaker Posco gained 2.0 percent on a technical rebound and positive earnings outlooks while top mobile carrier SK Telecom rose 2.1 percent. Telecommunication shares are usually regarded as less affected by economic cycles.
But tech blue chips closed mixed. Market leader Samsung Electronics fell 0.3 percent to 614,000 won and chip giant Hynix Semiconductor shed 1.3 percent on worries over their second-quarter earnings.
“On the back of the slowing DRAM chip recovery and falls in NAND flash prices, investors are in doubt about earlier views that the chip market will recover from the second half,” said Kim Young-june, an analyst at Kyobo Securities.
Consumer electronics giant LG Electronics gained 4.4 percent as investors thought its recent fall was too steep.
Yonhap, Reuters
with the Korea JoongAng Daily
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