Kospi up 1.27% on 7th day of foreign spree

Korean stocks closed 1.27 percent higher yesterday on strong foreign buying boosted by optimism about a global economic recovery, analysts said. The local currency rose against the dollar.

Kospi gained 24.52 points to 1,956.96. Trading volume was light at 336.6 million shares worth 4 trillion won ($3.54 billion) with advancers outpacing decliners 518 to 287.

“Expectations that U.S. and European central banks would step in soon to support the flagging global recovery eased concerns over an economic slowdown,” said Um Tae-woong, an analyst at Bookook Securities.
Foreign investors scooped up a net 419.3 billion won worth of local shares, extending their buying streak into a seventh straight session.

Um said the main index will hit the landmark 2,000-point mark this month but probably not move past it. The Kospi has remained below the benchmark since it finished at 2,004.53 on April 18.

“I can’t find any large momentum to push the index up in the near future. Only signs of recovery in the U.S. and slowing Chinese economy will fuel the move,” noted Um.

Shares gained ground across the board. Tech giant Samsung Electronics rose 1.51 percent to 1,345,000 won and No. 2 player LG Electronics inched up 0.76 percent to 66,600 won.

Steelmakers were bullish, with market leader Posco gaining 0.91 percent to 387,000 won and Korea Zinc, the world’s second-largest zinc smelter, up 1.06 percent to 383,000 won.

Leading carmaker Hyundai Motor rose 1.03 percent to 241,000 won and its smaller affiliate Kia Motors added 0.51 percent to 78,500 won.

However, shipbuilders were among the losers, with the world’s biggest shipyard Hyundai Heavy Industries slumping 1.03 percent to 241,000 won and Daewoo Shipbuilding & Marine Engineering slipping 0.37 percent to 26,900 won.

The local currency ended at 1,129.6 won against the greenback, up 1.5 won from Monday’s close, on the back of strong foreign buying, dealers said.

The stock market will be closed today as Korea celebrates Liberation Day.

Bond prices, which move inversely to yields, closed sharply lower. Yonhap.