Market falls below 2,020, closes 0.51% up
Although Seoul’s main bourse fell below 2,020 because of declining international oil prices, it closed at 2,030.04 on Monday, 10.24 points or 0.51 percent up from the previous trading day. Analysts said that less concern on the U.S. interest rate raise and falling bio-related stock prices in the U.S. may have encouraged investors to buy Korean shares.Foreign and retail investors net bought while institutional investors net sold.
By industry, electronics added 0.3 percent, securities soared 5 percent and construction hiked 2.1 percent. Stocks related to medical and precision machines on average inched up 6 percent.
The market bellwether Samsung Electronics gained 0.49 percent to 1,428,000 won ($1,292). Korea Electric Power Corporation jumped 1.33 percent to 45,600 won. Naver rose 1.34 percent to 681,000 won. Samsung SDS climbed 0.37 percent to 272,000 won. Cheil Industries edged up 2.71 percent to 151,500 won. LG Household and Health Care was up 1.40 percent to 799,000 won.
Meanwhile, Hyundai Motor fell 0.3 percent to 167,000 won and its auto-parts affiliate lost 0.2 percent to 245,000 won. The sister company Kia Motors slipped 0.33 percent to 45,250 won. SK Hynix dropped 0.66 percent to 45,500 won. SK Telecom declined 0.71 percent to 278,500 won. Posco plunged 3.58 percent to 242,500 won. Amore Pacific was down 0.58 percent to 3,241,000 won.
Korean government bonds rose, pushing yields to record lows, as a decline in a local factory gauge added to speculation monetary policy will be eased.
The yield on the bonds due September 2024 fell 2 basis points to 2.17 percent in Seoul, taking its decline this month to 18 basis points, Korea Exchange prices show. The yield on the notes due December 2017 dropped 1 basis point to 1.77 percent.
“The market is closely watching the data to seek signals for the monetary-policy outlook,” said Park Dong-jin, a fixed-income analyst at Samsung Futures. “Long-term yields have more room to fall than short-term yields as the three-year yield is approaching the benchmark rate.”
The won weakened 0.2 percent to 1,105.00 to a dollar. The currency declined 0.6 percent this month and dropped 1.3 percent this year.
BY KIM YOUNG-SHIN, BLOOMBERG [kim.youngshin@joongang.co.kr]
with the Korea JoongAng Daily
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