Tech stocks gain as recovery hopes climb
Seoul stocks ended up 0.21 percent yesterday as investor sentiment was lifted by eased financial woes, analysts said. The local currency rose against the dollar.The benchmark Kospi rose 3.03 points to 1,415.16. Volume was heavy at 668.43 million shares worth 6.9 trillion won ($5.57 billion), with winners outpacing losers 478 to 329.
“Expectations are growing that the economy is nearing bottom with more favorable signs coming from the U.S. financial sector,” said Lee Seung-woo, an analyst at Daewoo Securities.
Tech exporters benefited most on expectations that a global economic recovery would lead to increased demand. Display giant LG Display Co. advanced 1.8 percent. Chipmaker Hynix Semiconductor rose 2.2 percent on expectations that the memory chip industry is recovering. Financials also gathered ground. KB Financial Group rose 0.9 percent, and Hana Financial Group added 4.9 percent.
Korea Electric Power, which supplies almost all the power in the country, climbed 3.8 percent, while Korea Gas, the world’s largest buyer of liquefied natural gas, added 3.4 percent. Korea, which imports almost all of its energy needs, may increase power and gas prices to reflect high fuel costs and stem losses at state-run utilities, the Ministry of Knowledge Economy said.
NHN Corp., owner of Korea’s most-visited Internet search engine, jumped 5.6 percent as JPMorgan raised its recommendation to reflect a better second-quarter outlook.
It lifted its stock rating to “overweight” from “neutral” in a report dated Sunday. The brokerage forecasts the online advertising market to be flat in 2009, compared with a previous estimate of a 9 percent contraction.
On the other hand, STX Pan Ocean, Korea’s biggest bulk carrier, lost 0.8 percent. Korea Line, the second-biggest, retreated 4.5 percent. Asian dry-bulk shipping stocks were cut to “underweight” at Credit Suisse Group, which forecast industry-wide losses through 2010 on cooling demand, rising capacity and unprofitable rates.
Shipping lines will likely be unable to raise rates above break-even levels in the next two or three years, analysts led by Hung Bin Toh wrote in a note to clients yesterday.
The local currency finished at 1,237.9 won against the dollar, 9.1 won stronger than Friday’s close, as foreign investors sold the greenback to buy shares, dealers said.
Yonhap, Bloomberg
with the Korea JoongAng Daily
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