Market rises as investors snatch up deals
Korean stocks closed higher yesterday as foreign investors snapped up steel, shipyard and other recently oversold shares despite lingering concerns over a global slowdown, analysts said.The benchmark Kospi rose 9.47 points, or 0.6 percent, to 1,572.19. Volume was thin at 243.3 million shares worth 3.6 trillion won ($3.5 billion), with winners outperforming losers, 457 to 343.
“Stocks started lower and underwent fluctuations due to market uncertainty but a steady inflow of foreign funds helped push the index into positive territory later in the day,” said Choi Soon-ho, an analyst at Eugene Investment and Securities. “Investors seemed to view the previous day’s setbacks in Asian markets as excessive and many locked in bargain hunting of much affected shares,” he added.
Most blue chips closed higher, with shipyard and steel shares gaining substantial ground.
No. 1 shipyard Hyundai Heavy Industries climbed 2 percent to 275,500 won on foreign buying. Steelmaking giant Posco ended up 3.2 percent. Financials added to the upswing.
Rebounding oil prices, however, caused airline companies to lose ground. Top flag carrier Korean Air sank 2.2 percent, while Asiana Airlines fell 1.8 percent. The company reported a wider second-quarter loss because of record jet-fuel prices and a weaker won.
Tech shares also weighed on the market as concerns are growing that a global slowdown could reduce demand for chips and flat panels from major overseas markets.
Chipmaking giant Samsung Electronics dropped 1.2 percent to 580,000 won and flat-panel maker LG Display lost 0.2 percent.
KT&G, Korea’s biggest tobacco company, rose 1.2 percent, after it said it plans to buy back and cancel 173.4 billion won of stock.
The company will buy back 1.95 million shares from Aug. 18 to Nov. 17, KT&G said in a filing.
Interpark, a Korean online retailer, jumped 9.5 percent after eBay, the world’s largest Web auction company, said on Wednesday it’s in talks to buy a minority stake in Interpark’s auctioneer subsidiary Gmarket.
Korean stocks closed higher yesterday as foreign investors snapped up steel, shipyard and other recently oversold shares despite lingering concerns over a global slowdown, analysts said.
The benchmark Kospi rose 9.47 points, or 0.6 percent, to 1,572.19. Volume was thin at 243.3 million shares worth 3.6 trillion won ($3.5 billion), with winners outperforming losers, 457 to 343.
“Stocks started lower and underwent fluctuations due to market uncertainty but a steady inflow of foreign funds helped push the index into positive territory later in the day,” said Choi Soon-ho, an analyst at Eugene Investment and Securities. “Investors seemed to view the previous day’s setbacks in Asian markets as excessive and many locked in bargain hunting of much affected shares,” he added.
Most blue chips closed higher, with shipyard and steel shares gaining substantial ground.
No. 1 shipyard Hyundai Heavy Industries climbed 2 percent to 275,500 won on foreign buying. Steelmaking giant Posco ended up 3.2 percent. Financials added to the upswing.
Rebounding oil prices, however, caused airline companies to lose ground. Top flag carrier Korean Air sank 2.2 percent, while Asiana Airlines fell 1.8 percent. The company reported a wider second-quarter loss because of record jet-fuel prices and a weaker won.
Tech shares also weighed on the market as concerns are growing that a global slowdown could reduce demand for chips and flat panels from major overseas markets.
Chipmaking giant Samsung Electronics dropped 1.2 percent to 580,000 won and flat-panel maker LG Display lost 0.2 percent.
KT&G, Korea’s biggest tobacco company, rose 1.2 percent, after it said it plans to buy back and cancel 173.4 billion won of stock.
The company will buy back 1.95 million shares from Aug. 18 to Nov. 17, KT&G said in a filing.
Interpark, a Korean online retailer, jumped 9.5 percent after eBay, the world’s largest Web auction company, said on Wednesday it’s in talks to buy a minority stake in Interpark’s auctioneer subsidiary Gmarket.
Yonhap, Bloomberg
with the Korea JoongAng Daily
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