Market ends 3-session slump in a big way

Finance

Published: 13 Jan. 2014, 21:24

Market ends 3-session slump in a big way

Korean stocks closed higher yesterday, rebounding from a four-month low on gains by exporters such as Samsung Electronics and Hyundai Motor. The won closed higher against the greenback.

The benchmark Kospi rose 10.38 points, or 0.54 percent, to finish at 1,948.92, halting a three-session skid. Trading volume was low at 263.9 million shares worth 3.31 trillion won ($3.14 billion), with 450 gainers and 360 losers.

Institutional investors picked up a net 66.5 billion won worth of Kospi shares, posting their first net-buying session of the year, while foreigners sold a net 95.4 billion won.

The two largest components in the Kospi buttressed the main bourse. Samsung Electronics rose 1.8 percent and Hyundai Motor advanced 3.2 percent.

Hyundai Mobis gained 2.19 percent, Kia Motor edged up 1.74 percent and Celltrion rose 0.98 percent. On the other hand, Korea Electric Power Corporation lost 3.02 percent and Naver slipped 2.90 percent.

“The surprisingly weak [U.S. nonfarm payroll] figures have reversed the yen’s slide and brought with it some speculation about the Fed’s next move,” said Kim Yong-goo, analyst at Samsung Securities. “However, with key U.S. index reports including retail sales on the way, fluctuations in the market are expected.”

The Korean won ended higher in domestic trade yesterday, touching a one-week high against the dollar as worse-than-expected U.S. jobs data pulled the dollar broadly lower.

The won was quoted at 1,056.7 against the dollar at the end of domestic trading, up 0.4 percent from Friday’s closing level of 1,061.4. This marked the biggest daily percentage gain since Jan. 2.

The won traded as high as 1,055.6 against the dollar earlier yesterday, its highest level since Jan. 6.

Korean bonds ended higher, as weak U.S. jobs data suggested that the Federal Reserve may not unwind its stimulus as quickly as anticipated, pushing yields lower.

Yield on the benchmark 10-year government bond ended down 2.8 basis points, while lead March futures on three-year treasury bonds ended up 0.09 points at 105.67.

BY KIM JUNG-YOON, REUTERS [kjy@joongang.co.kr]