Rising commodity prices lift local market
Korean stocks closed 0.79 percent higher yesterday as investors scooped up shipbuilders and steelmakers, analysts said. The local currency fell against the U.S. dollar.
The benchmark Kospi advanced 9.13 points to 1,170.94, closing above 1,170 for the first time since Feb. 16. Volume was moderate at 369.6 million shares worth 4.17 trillion won ($2.95 billion), with gainers outpacing losers 535 to 285.
“On news of rising commodity prices, steelmakers led the market’s upward movement. However, the weaker won pulled the market lower, barely making it above the 1,170-point mark,” said Choi Jae-shik, an analyst at Daishin Securities Co.
Shipbuilders and steelmakers advanced with the world’s largest shipyard, Hyundai Heavy Industries, rising 1.58 percent to 172,500 won. Leading steelmaker Posco gained 2.73 percent to 357,000 won on positive earnings forecasts.
Market bellwether Samsung Electronics gained 0.18 percent to close at 542,000 won. SK Telecom, Korea’s largest wireless operator, rose 0.53 percent to close at 188,000 won, while LG Electronics also gained 1.07 percent to 84,900 won.
Refineries ended higher on expectations that they might benefit from higher oil prices. SK Energy jumped 3.49 percent to 85,900 won. After volatile trading, carmakers gained ground with industry leader Hyundai Motor advancing 0.78 percent to 52,000 won.
The tech-heavy Kosdaq leaped 6.77 points, or 1.72 percent, to close at 400.71, rising above the 400-point mark for the first time since Feb. 16. Heavy institutional buying offset massive sell-off by retail and foreign investors.
Daum, Korea’s second-largest Internet portal site, rose 4.16 percent. Interpark, Korea’s major Internet shopping mall operator, gained 3.13 percent, and online game maker Neowiz spiked 4.24 percent.
Gainers beat losers by 576 to 335.
The local currency ended at 1,412.5 won to the dollar, down 16.5 won from Thursday’s close, as importers bought dollars to pay bills, dealers said.
Bond prices, which move inversely to yields, closed mixed. The return on three-year Treasuries was steady at 3.49 percent and the benchmark yield on five-year government bonds rose 0.03 percentage point to 4.18 percent. Yonhap
with the Korea JoongAng Daily
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