Kospi stocks reach highest point this year
Korean stocks managed to break through the 2,020 barrier yesterday, marking the highest Kospi point so far this year as speculation over a rate cut expanded in the country. The Korean won gained against the U.S. dollar.The benchmark Kospi closed at 2020.90 yesterday, up 7.42 points or 0.37 percent, from Wednesday’s close. Foreign investors continued to push through, recording a net purchase of more than 225 billion won ($219 million), while retail investors and institutions continued to sell stocks.
“The market is expecting a rate cut in August and this is leading to more hopes that there may be additional stimulus,” said Lee Jin-woo, a Seoul-based money manager at KTB Asset Management.
IT industry shares were largely on the rise. Samsung Electronics, the nation’s largest electronics company, rose 0.68 percent to 1.33 million won. LG Electronics was up 3.27 percent to 75,800 won, while LG Display also rose 3.37 percent to 33,750 won.
SK Hynix, the world’s second-largest memory-chip maker, budged slightly, marking a 0.98-percent rise to close at 51,500 won.
Automobile shares, however, weren‘t as hot. Hyundai Motor fell 0.43 percent, closing at 234,000 won, while its smaller rival, Kia Motors, fell 0.54 percent to 55,700 won. Hyundai’s auto parts manufacturer, Hyundai Mobis, remained unchanged from the previous day, closing at 284,000 won.
Other large-cap shares such as LG Chem, Korea’s largest chemical company, climbed 1.37 percent to 297,000 won and Posco, the nation’s major steelmaker, continued to rise, ending at 308,000 won after a 1.99 percent rise.
Naver, the country’s largest web portal, dropped 2.13 percent to 782,000 won.
The won closed 0.3 percent stronger at 1,029.32 per dollar after earlier rising as much as 0.6 percent to 1,025.93.
Korea’s 10-year bonds rose the most in two weeks, and stocks extended a rally after newly appointed Finance Minister Choi Kyung-hwan flagged a possible interest-rate cut.
Choi said Korea’s economic recovery is “fragile” and that the government may have to lower its 3.9 percent growth forecast by more than 0.2 percentage point.
BY kim eun-ji, bloomberg [eunjik@joongang.co.kr]
with the Korea JoongAng Daily
To write comments, please log in to one of the accounts.
Standards Board Policy (0/250자)