Lower oil, gains on Wall Street raise Kospi
Korean stocks advanced 2.4 percent yesterday as investor sentiment was lifted by Wall Street gains, following speculation that Lehman Brothers Holdings is in talks for its possible sale, analysts said.The benchmark Kospi gained 34.68 points to 1,477.92. Volume was moderate at 305.5 million shares worth 4.7 trillion won ($4.22 billion), with gainers outpacing losers 670 to 157.
“The key stock index gained ground, helped by market talk about Lehman. Asian markets also rose in the morning session, giving a boost to sentiment,” said Park Suk-hyun, an analyst at Eugene Investment and Securities.
The Wall Street Journal reported that Lehman Brothers is shopping itself to potential buyers including Bank of America. U.S. stocks gained Thursday as investor sentiment was boosted by falling oil prices and the report on the Lehman talks. The Dow Jones industrial average gained 1.5 percent and the tech-dominated Nasdaq composite index rose 1.3 percent.
Analysts also said gains in the Kospi came as uncertainties weighing on the local market this week were dispelled. Korea has been gripped by fears that the country may face a crisis similar to the one it suffered a decade ago, as concerns grew that foreign investors would possibly withdraw their capital from local bond markets en masse this week.
“Institutional buying propped up the market with major events like foreign bond maturity and the wrapping up of a key rate decision,” said Bae Sung-young, an analyst at Hyundai Securities.
Most shares traded in positive territory, led by exporters and financial shares. Tech bellwether Samsung Electronics rose 1.1 percent to 543,000 won and consumer electronics giant LG Electronics advanced 2.2 percent after announcing an agreement to set up a joint venture with Germany’s Conergy AG to produce solar cells.
Financial shares were bullish as investors were relieved from the fading fears of September crisis. Top lender Kookmin Bank jumped 3.8 percent and Shinhan Financial Holdings advanced 1.7 percent. Woori Finance Holdings soared 5.9 percent.
The nation’s largest steelmaker Posco jumped 4.6 percent and the world’s top shipbuilder Hyundai Heavy Industries mounted 3.9 percent.Yonhap
with the Korea JoongAng Daily
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