Fluctuations continue on cautious market
Korean share prices closed slightly higher yesterday after some severe fluctuations in early trading, extending gains for a third consecutive day, analysts said. The benchmark Kospi advanced 4.37 points, or 0.33 percent, to close at 1,342.63, the highest since Oct. 14.Volume was heavy at 924.4 million shares worth 8.2 trillion won ($6.19 billion), with gainers outpacing losers 408 to 396.
“While there are some signs of hope that the economic slowdown is gradually receding, investors were cautious ahead of the first-quarter earnings reports,” said Choi Jae-shik, an analyst with Daishin Investment and Securities. “The market this week will continue to show corrections in a mild zigzag.”
Foreign investors were net buyers of stocks worth 133.4 billion won, and retail investors bought a net 231.6 billion won worth of shares. Institutions sold a net 376.4 billion won worth of stocks. The key index got off to a weak start and continued to swing between positive and negative territory.
Tech shares ended mixed as market leader Samsung Electronics fell 1.2 percent to 576,000 won, while LG Electronics was up 3.76 percent to 102,000 won and Hynix Semiconductor gained 3.73 percent to 13,900 won.
Most financials rose on optimism that a decline in profits would be smaller than expected, following overnight news that Goldman Sachs Group Inc. reported better-than-expected quarterly results after the U.S. market closed on Monday. KB Financial Group, the holding company of the country’s leading lender Kookmin Bank, gained 0.38 percent to 39,250 won, and its rival Woori Finance Holdings rose 2.5 percent to 10,250 won, the highest since Oct. 21. Hana Financial Group Inc., which controls the country’s fourth-biggest bank, gained 1.7 percent to 23,700 won. Auto shares managed marginal gains, with Hyundai Motor gaining 0.3 percent to 66,300 won and its affiliate Kia Motors steady at 10,150 won.
Posco, the third-biggest Asian steelmaker, added 0.9 percent to 380,500 won. Posco was raised to “outperform” from “neutral” at Macquarie Group Ltd., which said earnings may improve from the second quarter. The brokerage lifted its share-price estimate to 451,000 won from 342,000 won in a report today.
Korea, the sixth-biggest steel-producing nation, may lift output capacity to a record this year as Posco and mills bet demand will revive, the Korea Iron and Steel Association said.Yonhap, Bloomberg
with the Korea JoongAng Daily
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