Construction firms lead small stock gains
Korean stocks closed up 0.52 percent yesterday as investors were buoyed by upbeat U.S. housing data, analysts said. The Korean won fell against the U.S. dollar, ending three days of strong gains.The benchmark Kospi added 6.07 points to 1,169.95. Volume was heavy at 514.4 million shares worth 4.99 trillion won ($3.53 billion), with gainers outpacing losers 534 to 273.
“Despite profit-taking, the key index managed to gain, spurred by bullish U.S. markets and policy support,” said Lee Sun-yup, an analyst at Goodmorning Shinhan Securities. U.S. markets rallied on Tuesday after a sharp increase in last month’s construction data boosted investor sentiment.
Builders led the overall gains. Hyundai Engineering and Construction, Korea’s third-largest builder, rose 3.6 percent, and GS Engineering and Construction, Korea’s second-largest builder by sales, gained 3.55 percent.
Large-cap tech shares also gathered ground. Samsung Electronics, Korea’s largest company by market value, climbed 1.12 percent to 540,000 won, and Hynix Semiconductor, the world’s second-largest computer memory chip maker jumped 4.57 percent.
Banks dipped as investors took profits from recent advances. KB Financial Group, which controls top lender Kofokmin Bank, lost 2.31 percent, and Hana Financial Group, Korea’s No. 4 financial services company, also dropped 2.65 percent. The nation’s biggest electricity supplier, Korea Electric Power, also traded 2.89 percent lower.
The local currency closed at 1,421.5 won to the dollar, down 13 from Tuesday’s close, as importers bought dollars to clear debts, dealers said. The won dropped on speculation importers are taking advantage of the currency’s three-day rally to pay their bills.
“The won’s recent strength is spurring a bout of importers’ settlements,” said Lee Young Chul, a currency dealer with Korea Exchange Bank in Seoul. “With local stocks showing signs of faltering, demand for the currency also weakened.”
Meanwhile, demand for the won rose earlier after Finance Minister Yoon Jeung-hyun said the government will continue to discuss a “satisfactory” package to help create jobs. The government is pumping 51 trillion won ($36 billion) into the economy, including tax cuts and infrastructure spending, in a plan to be submitted to the Assembly by the month’s end, he said. Yonhap, Bloomberg
with the Korea JoongAng Daily
To write comments, please log in to one of the accounts.
Standards Board Policy (0/250자)