Petroleum and medical stocks get a boost
Korea’s main bourse reached a record high for the year thanks to a weak dollar and strong foreign markets.The Kospi opened above the 2,040 mark and peaked at 2047.13, before closing at 2037.89, up 9.44 points or 0.47 percent.
Foreign investors net purchased, while institutional and retail investors sold.
An increase in oil prices fueled chemical and petroleum industry shares. Chemicals rose 2.1 percent, transportation accelerated 1 percent and securities climbed 1.4 percent. Electronics slipped 1.6 percent.
The government announcement that it will support development of stem cell and genetic drugs sent medical-related stocks up 4.8 percent. Hanmi Pharmaceutical soared 14.84 percent to 209,000 won ($187) and Green Cross rose 5.13 percent to 164,000 won.
Hyundai Motor gained 1.1 percent to 184,000 won and parts affiliate Hyundai Mobis edged up 0.38 percent to 261,000 won. SK Hynix added 0.32 percent to 46,400 won, and SK Telecom gained 3.2 percent to 290,500 won. Posco saw a 0.58 percent rise to 290,500 won. Samsung SDS climbed 1.26 percent to 281,000 won. Amore Pacific bounced up 3.44 percent to 3,190,000 won, and LG Chem charged up 3.08 percent to 234,000 won.
Samsung Electronics dropped 2.2 percent to 1,470,000 won. Naver lost 1.99 percent to 641,000 won. Kia Motors reversed 0.42 percent to 47,350 won. Samsung Fire and Marine Insurance sank 2.27 percent to 258,000 won.
The won and government bonds rallied after the U.S. Federal Reserve signaled that U.S. interest rates will rise at a slower pace than previously forecast, boosting demand for emerging-market assets.
The won strengthened 1.1 percent to 1,117.24 against the dollar as of the 3 p.m. close in Seoul. “Some market participants saw the won’s gains in the morning as excessive and seem to be talking of dollar appreciation again,” said Won Jahng, a Seoul-based currency trader at Shinhan Bank.
The yield on 2 percent notes due December 2017 fell three basis points, or 0.03 percentage point, to 1.84 percent, Korea Exchange prices show. The 10-year yield declined seven basis points to 2.20 percent.
BY KIM YOUNG-SHIN, BLOOMBERG [kim.youngshin@joongang.co.kr]
with the Korea JoongAng Daily
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