Kospi breaks 2,015 level for 2014 high
The Kospi recorded its high point for the year yesterday, gaining 0.08 percent to close at 2,015.14 on the strength of foreign investors, who purchased a net 182.4 billion won ($178.5 million) in shares.Samsung Electronics was up 1.4 percent to 1,448,000 won. LG Electronics dropped 0.73 percent to 68,000 won after releasing its new F70 low-end smartphone yesterday. SK Hynix, the world’s second-largest chip maker, dropped 3.2 percent to 40,900 won.
Hyundai Motor was down 0.43 percent at 233,500 won, while Kia Motors drove up 1.72 percent at 59,000 won. Hyundai Mobis, the group’s auto-parts manufacturer, slid 0.5 percent to 296,000 won.
Posco, the nation’s largest steelmaker, was down 0.48 percent to 309,000 won after unveiling new structural shifts.
SK Telecom dialed up 0.45 percent to 224,500 won, while KT was down 0.47 percent to 31,950 won. LG U+ dropped 1.61 percent to 9,800 won.
The won appreciated 0.2 percent to 1,022.06 per dollar, according to data. It has rallied 4.2 percent this quarter, the best performance among 31 major exchange rates.
The yield on 3.5 percent government notes due March 2024 fell one basis point to 3.38 percent at the close in Seoul, according to Korea Exchange. The yield on the 3.13 percent bonds maturing March 2019 declined one basis point to 3.07 percent. HSBC predicts 10-year yields will drop to 3.2 percent, without specifying a time frame.
“There are expectations that bond yields can fall lower as the economic recovery doesn’t look strong,” said Park Dong-jin, a Seoul-based fixed-income analyst at Samsung Futures.
Overseas investors bought more 10-year bond futures than they sold today while the finance ministry auctioned 2.13 trillion won of 10-year bonds at 3.38 percent. The nation’s exports increased 9 percent in April from a year earlier, more than the 5.5 percent gain estimated in a survey, official data showed May 1.
One-month implied volatility, a gauge of expected moves in the exchange rate used to price options, rose six basis points, or 0.06 percentage point, to 5.97 percent.
BY KIM JI-YOON, BLOOMBERG [jiyoon.kim@joongang.co.kr]
with the Korea JoongAng Daily
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