Wall Street rally is reflected on the Kospi
Korean shares finished 1.36 percent higher yesterday as foreign investors scooped up big caps following a Wall Street rally in the previous session, analysts said. The local currency fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index added 15.45 points to 1,150.65, rising for a second session. Volume was moderate at 364.80 million shares worth 4.43 trillion won ($3.25 billion), with winners outpacing losers 546 to 273.
“Foreign investors were major buyers, emboldened by the U.S. government’s measures to boost the world’s largest economy and overnight gains on Wall Street,” said Kim Hak-kyun, an analyst at Korea Investment and Securities.
The Dow Jones industrial average climbed 0.84 percent after U.S. equities and commodity prices rose on Friday, with the tech-heavy Nasdaq gaining 1.16 percent.
Market bellwether Samsung Electronics rose 1.28 percent to 475,000 won ($348), with LG Electronics gaining 1.16 percent to close at 78,400 won.
Tech blue chips also gained ground on institutional buying. Chip maker Hynix Semiconductor rose 12.81 percent and flat panel giant LG Display surged 7.88 percent. Automakers finished stronger as their sales figures are forecast to improve down the road. Hyundai Motor, the biggest carmaker, jumped 6.81 percent and its affiliate Kia Motors added 2.45 percent. Daewoo Shipbuilding and Marine Engineering Co. led advances among Korea’s shipyards on expectations that earnings will gain after steel-plate prices dropped for the first time in more than two years.
Daewoo Shipbuilding, the world’s third-largest shipbuilder, gained by the daily 15 percent limit, the most in more than two weeks, to close at 20,750 won. Samsung Heavy Industries Co., the second-largest shipyard, climbed 6.8 percent. The global recession has reduced demand for vehicles and homes, prompting steelmakers to slash output and prices. Dongkuk Steel Mill Co., Korea’s third-largest steelmaker, cut plate prices by 250,000 won to 1.16 million won a metric ton from yesterday, the mill’s first reduction since October 2006.
“The cut in steel-plate prices came earlier than expected and that will definitely help shipyards’ earnings,” said Ahn Ji-hyun, an analyst at NH Investment and Securities Co. Yonhap, Bloomberg
with the Korea JoongAng Daily
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