Korean shares and the won gain ground
Korean shares on Monday were pushed up, rising above 2,000 points largely thanks to foreign investors who continued to buy for a third consecutive day.The benchmark Kospi yesterday gained 13.7 points, or 0.69 percent, to close at 2,002.21. The market’s bellwether, Samsung Electronics, was up 0.84 percent to 1,322,000 won ($1,206.6) ahead of its upcoming second-quarter operating profit forecast to be announced on Friday. Most local securities firms are rolling out lower forecasts than at the beginning of the quarter.
LG Electronics slipped down 0.13 percent to 74,300 won, and SK Hynix, the nation’s largest semiconductor manufacturer, gained 2.21 percent to 48,500 won.
Hyundai Motor lost 0.22 percent to close at 229,500 won, while its sister Kia Motors also dropped 0.18 percent to 56,600 won. Hyundai Mobis, the group’s auto parts manufacturer, climbed 0.89 percent to 284,000 won. Samsung Securities yesterday released a report that the parts maker will benefit from Kia Motors’ production line expansion in Mexico.
Dongbu Steel skyrocketed 14.85 percent to close at 1,740 won.
The won, meanwhile, reached a six-year high and ratcheted up the biggest quarterly advance in three years. The won rose against the U.S. dollar, while South Korea’s current-account surplus widened.
The currency rose 0.2 percent, to 1,011.84 to the dollar, in Seoul, data compiled by Bloomberg show.
It earlier reached 1,010.80, the highest since July 2008. The won’s 5.2 percent jump this quarter is the most among 31 major currencies tracked by Bloomberg.
“The won’s strength this quarter stems from the dollar’s weakness as well as Korea’s persistent current-account surplus,” said Jeon Seung-ji, a Seoul-based strategist at Samsung Futures. “The currency may find it difficult to match the same pace of gains next quarter because intervention concerns are high.”
One-month implied volatility in the won rose 14 basis points, or 0.14 percentage points, yesterday to 4.69 percent. It has dropped 77 basis points this month and 221 this quarter, according to data compiled by Bloomberg.
BY KIM JI-YOON, BLOOMBERG [jiyoon.kim@joongang.co.kr]
with the Korea JoongAng Daily
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