Hopes of bottom getting closer help Kospi
Korean stocks ended up 1.2 percent yesterday as investor sentiment was lifted by U.S. market advances amid improving economic indicators, analysts said. The local currency rose against the U.S. dollar for a fourth day.The benchmark Kospi jumped 14.78 points to 1,243.8, the highest in more than five months. Volume was heavy at 579.96 million shares worth 5.8 trillion won ($4.3 billion), with winners outpacing losers 557 to 262.
“Expectations are growing that the economy is nearing its bottom with more favorable signs coming from the U.S.,” said Kim Jung-hyun, an analyst at Goodmorning Shinhan Securities. “Also contributing to the market advance is foreign investors which continue to increase their holdings of local shares.”
In Korea, foreigners bought more shares than they sold for an eighth consecutive day. Their net purchase amounted to over 50 billion won on Thursday
Tech exporters benefited most on expectations that a global economic recovery would lead to increased demand.
Chipmaking giant Samsung Electronics advanced 2.52 percent to 570,000 won. Smaller Hynix Semiconductor surged by the daily limit of 14.71 percent to 11,700 won after its chief executive officer said the company will turn profitable on a quarterly basis within this year.
Financials and automakers added to the upswings. KB Financial Group jumped 4.26 percent to 36,700 won, while Korea Exchange Bank surged 4.97 percent to 6,970 won.
No. 1 carmaker Hyundai Motor reversed earlier losses, ending 1.7 percent higher to 53,700 won after the government unveiled demand-boosting measures, including tax reductions for car purchases. Its affiliate Kia Motors also gained 3.95 percent to 8,420 won.
The currency finished at 1,330.5 won against the U.S. dollar, up 32.5 won from Wednesday’s close, as offshore investors dumped the greenback, dealers said.
Bond prices, which move inversely to yields, closed sharply lower on worries the government’s looming debt sale to fund its large-scale extra budget will outweigh demand despite recent market stabilization measures.
The return on three-year Treasuries jumped 0.07 percentage point to 3.71 percent and the benchmark yield on five-year government bonds also surged 0.12 percentage point to 4.6 percent. Yonhap
with the Korea JoongAng Daily
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