Rising won bolsters local financial shares

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Rising won bolsters local financial shares

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A terminal tracks the Kospi index and the dollar-won exchange rate. [YONHAP]

Korean stocks closed 3.41 percent higher yesterday as foreign and institutional buyers picked up blue chips, analysts said. The local currency surged against the U.S. dollar for the third straight day.

The benchmark Kospi index added 38.42 points to 1,163.88. Volume was heavy at 718.6 million shares worth 5.72 trillion won ($4.06 billion), with gainers outpacing losers 667 to 167.

“Massive institutional buying, followed by foreign investors, helped the key index end higher,” said Choi Jae-shik, an analyst at Daishin Securities Co.

“Financials across the board made strong gains as investors expected a stronger won to improve local lenders’ ability to secure overseas funding,” Choi said.

Banking shares led the overall market rally, with KB Financial Group, which controls top lender Kookmin Bank, rising 6.77 percent to 34,700 won, and the No. 2 Shinhan Financial Group jumping 9.57 percent to 25,200 won. Woori Finance Holdings also spiked 7.26 percent to close at 7,240 won.

Most blue chips gained ground, with market leader Samsung Electronics, Korea’s largest company by market value, going up 2.1 percent to 534,000 won, and local rival LG Electronics gaining 2.94 percent to 87,500 won.

Leading exporters, such as carmakers and shipbuilders, also fared well. Hyundai Motor went up 2.64 percent to 54,400 won, and Kia Motors gained 6.67 to 8,000 won, while top shipbuilder Hyundai Heavy Industries rose 5.28 percent to 189,500 won.

The tech-laced Kosdaq gained 6.89 points, or 1.78 percent, to close at 394.66.

The local currency closed at 1,408.5 won to the dollar, up 31.5 won from Monday’s close, as offshore investors unloaded the greenback, dealers said.

Yonhap
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