Kospi bounces back from last week’s losses
Korean stocks surged yesterday as investor sentiment rose thanks to ongoing global efforts to tackle the evolving financial turmoil in the world. The benchmark Kospi climbed 47.06 points, or 3.8 percent, to 1,288.53. Volume was moderate at 375.6 million shares worth 5.4 trillion won ($4.38 billion), with winners outpacing losers 682 to 170.Steep earlier gains prompted the Korea Exchange to suspend program trading to cool the market right after its opening. The move marked the sixth time trading has been temporarily suspended this year.
“Investors seemed to believe that the index has hit a short-term bottom following its excessive plunge last week,” said Lee Sun-yup, an analyst at Goodmorning Shinhan Securities. “Accelerating global efforts to avoid a crisis also helped prop up dented confidence, triggering the rallies.”
Lee added that the won’s ascent against the U.S. dollar also lifted investors’ moods by dispelling jitters Korea might slip into a crisis similar to the one it suffered a decade ago. The stronger won, however, prompted a sell-off by foreign investors who eyed higher returns from currency conversions.
Most blue chips gained, with top steelmaker Posco up 5.2 percent and smaller Hyundai Steel jumping 9.7 percent. Shipyards and machinery shares were also marked gainers. Top shipbuilder Hyundai Heavy Industries advanced 2 percent, and Samsung Heavy Industries rose 7.5 percent. Financials ended sharply higher as investors bet on hopes for ongoing global efforts against financial crisis will help. Woori Finance Holdings soared 14.1 percent and leading brokerage Mirae Asset and Securities also added 5.5 percent. Yonhap
with the Korea JoongAng Daily
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