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Stocks rise on China exports and regulations

June 12,2019
Stocks rose to a one-month high Tuesday, as China’s exports remained strong in May and it eased regulations on local government spending on public projects. The won appreciated against the dollar.

The benchmark Kospi rose 12.32 points, or 0.59 percent, to close at 2,111.81. Trade volume was moderate at 542 million shares worth 4.1 trillion won ($3.5 billion).

The market opened mildly lower but soon turned upward in the late morning session on news that China’s outbound shipments rose last month despite escalating trade friction with the United States.

China also eased rules on local government spending on infrastructure projects, which was interpreted as signaling that it is working on boosting its economy. China’s stock market surged.

“Hopes for trade talks between the United States and China, coupled with the rise in the Chinese stock market pushed up the local stock market,” said Seo Sang-young, an analyst at Kiwoom Securities.

Individuals sold a net 266.2 billion won worth of shares and foreign investors bought a net 69.2 billion won worth of shares.

Institutions bought a net 203.3 billion won of stocks.

Tech shares led market gains. Samsung Electronics inched up 0.11 percent to 44,850 won to extend its winning streak to a fourth day. LG Electronics surged 6.03 percent to 82,600 won on prospects that its smartphone business will improve down the road. SK Hynix was up 0.6 percent to 67,200 won.

Automakers traded mixed, with Hyundai Motor moving up 0.35 percent to 143,500 won, while Kia Motors declined 0.47 percent to 42,800 won.

Korean Air inched down 0.15 percent to 32,450 won and its holding firm, Hanjin KAL, fell 2.65 percent to 42,250 won on news that the younger daughter of the late chairman, Cho Yang-ho, returned to two management positions at logistics-centered Hanjin Group, over one year after she was forced to resign amid controversy over her misbehavior.

The Kosdaq rose 7.65 points, or 1.06 percent, to end the session at 728.79. The tech-heavy index was lifted by institutional and foreign buying of semiconductor shares and a 2.5-percent rise in Philadelphia Semiconductor Index overnight.

The won closed at 1,180.4 won against the dollar, down 4.8 won from the previous session’s close.

Bond prices ended lower. The yield on three-year bonds rose 0.9 basis points to 1.54 percent. The yield on 10-year bonds rose 1.9 basis points to 1.68 percent.

BY KIM HE-YU, YONHAP [kim.heyu@joongang.co.kr]


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