Financial, machinery shares rise on Kospi
A dealer at Korea Exchange Bank headquarters in downtown Seoul yesterday after the Kospi closed up at 1,157.98. [YONHAP]
The benchmark Kospi surged 64.58 points to 1,157,98, the largest daily gain in about seven weeks. Volume was moderate at 339.63 million shares worth 4.5 trillion won ($3.27 billion), with gainers outpacing losers 692 to 163.
Recently beaten-down financial and machinery shares got a big boost from improved investor sentiment, especially among foreign investors who turned to net buyers after four consecutive sessions of net sales. KB Financial Group, whose flagship is top lender Kookmin Bank, soared 10.97 percent to 35,400 won, and Shinhan Financial Group, which controls Shinhan Bank, jumped 7.84 percent to 27,500 won.
Posco, Asia’s third-largest steelmaker, climbed 7.2 percent after its U.S. rivals gained on speculation the worst of the industry slump may be over. Leading shipbuilder Hyundai Heavy Industries jumped 7.34 percent to 197,500 won.
Hyundai Motor Co., Korea’s largest automaker, and Kia Motors Corp. rose by the most in more than a month on speculation the carmakers may benefit from U.S. policies on stricter vehicle emissions rules and higher fuel-efficiency. Hyundai jumped 12 percent to 47,000 won, while Kia surged 11 percent to 7,520 won.
The local currency ended at 1,376.10 won to the dollar, up 14.80 won from Friday’s close, as the bullish stock market helped lure foreign investors, dealers said.
“There are expectations for exporters’ settlements as it nears month-end,” said Jay Won, a currency dealer with Korea Exchange Bank in Seoul. “The strong gains in local stocks are also being priced into the currency market.”Yonhap, Bloomberg
with the Korea JoongAng Daily
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