Tech shares, automakers light up Kospi
Korean stocks closed 2.77 percent higher yesterday as Samsung Electronics and other tech companies soared on strong foreign buying, analysts said. The local currency gained against the U.S. dollar.The benchmark Kospi soared 32.17 points to 1,195.37. Volume was moderate at 443.03 million shares worth 5.64 trillion won ($4.09 billion), with earners outpacing losers 641 to 195. Foreign investors scooped up tech shares and automakers, extending their buying streak to a sixth-session and providing upward momentum to the key index.
“IT shares lured overseas investors after their Taiwanese competitors were reported to undergo an industry-wide restructuring on falling profits,” said Yun Ji-ho, an analyst at Hanwha Securities.
Chip behemoth Samsung Electronics advanced 5.7 percent to a one-month high of 518,000 won on news of Taiwan’s tech overhaul. LG Electronics also gained 6.6 percent to 78,000 won following a report it became the world’s No. 3 handset seller, beating Motorola last year.
Shares of Hyundai Motor and Kia Motors also gathered substantial ground as their January sales in the U.S. increased 14 percent and 3.5 percent, respectively, despite an overall drop in demand. Hyundai surged 8.01 percent to 51,900 won and Kia spiked 11.7 percent to end at 8,950 won.
“Hyundai’s January sales were outstanding,” said Kevin Lee, a Seoul-based analyst at Goodmorning Shinhan Securities. “The results affirm the strengths of Hyundai.” Lee rates Hyundai as “buy.” Kolon Industries, a local Korean maker of chemical fibers and textiles, fell by the most in a week in Seoul trading after it was sued by DuPont Co. for allegedly stealing trade secrets. Kolon retreated 2 percent to 26,800 won at the close on the Korea Exchange, its biggest drop since Jan. 28. The stock fell as much as 6.2 percent earlier.
Korea Exchange Bank, which is controlled by U.S. Lone Star Funds, dropped 0.9 percent to 6,530 won after reporting its 2008 earnings shrank 16.6 percent due to more provisions against bad loans.
The local currency ended at 1,378.5 won to the dollar, up 11 won from Tuesday’s close, as the U.S. Fed’s extension of a currency swap line with the Bank of Korea mitigated the dollar shortage concern, dealers said. Yonhap, Bloomberg
with the Korea JoongAng Daily
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