Investors hope for year-end rally on Kospi
Seoul stocks closed 3.6 percent higher yesterday as investors picked up bank and automobile shares, shrugging off overnight Wall Street losses, analysts said.The benchmark Kospi climbed 40.03 points to 1,145.87.
Volume was heavy at 548.4 million shares worth 7.3 trillion won ($5.3 billion), with gainers outpacing losers 621 to 200.
“Foreign investors’ stock buying gave a boost to the local market. Investors seemed to have expectations for a year-end rally,” said Bae Sung-young, an analyst at Hyundai Securities.
Reports that the U.S. government and Congress tentatively agreed on a deal to save the ailing auto industry lifted sentiment across Asia.
Foreigners snapped up a net 343.9 billion won worth of local stocks on the Seoul bourse.
Beaten-down shares like banks and builders gained momentum. KB Financial Group, the holding company of Kookmin Bank, jumped 6.9 percent and its rival Hana Financial Group rose by the daily limit of 15 percent.
But after trading higher, chip giant Hynix Semiconductor closed 0.1 percent lower despite reports that the chipmaker would get a lifeline from its creditor banks.
Local banks tentatively agreed to provide funds worth 800 billion won ($574 million) to Hynix, which is suffering from a liquidity crunch.
Oyang Fisheries, Dong Won Fisheries and Silla Seafood gained by the daily limit of 15 percent. The stocks rose after Hong Kong announced chickens from a local farm were found to have died from the H5 bird-flu virus. Korea Line, the nation’s second-biggest bulk carrier, rose 5.4 percent.
KT, the biggest Korean telecommunications company, climbed 6.8 percent. The company recommended former information minister Lee Suk-chae as a candidate for chief executive officer. Yonhap, Bloomberg
with the Korea JoongAng Daily
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