News of evaluation by Moody’s bolsters KospiKorean stock indices closed at another record high yesterday as foreign investors put money into shipbuilding and financial issues. The overnight rally on the New York Stock Exchange also pumped up foreign purchases.
Moody’s announced it will re-evaluate Korea’s rating, while government officials expect a raise from Fitch Ratings and Standard & Poor’s. Kim Jong-il also spoke of easing tensions on the Korean Peninsula, giving the market another boost.
The benchmark Kospi surged 32.91 points, or 1.8 percent, to 1,838.41. The aggregate value of the listed stocks topped 1 quadrillion won ($1.1 trillion) for the first time. Shipbuilding, machinery, chemical and transportation led the rally. Securities, information technology and financials also continued to rise.
“In line with gains in global equities, the main index advanced for the third consecutive session amid eased concerns over U.S. economic growth,” said Kim Hak-kyun, an analyst at Korea Investment & Securities. “Shipyards and banks sent the market to a fresh high as foreigners engaged in a buying spree for a second day.”
Hyundai Heavy Industries, the world’s leading shipbuilder, jumped 5.5 percent while the world’s No. 2 shipyard, Samsung Heavy Industries, soared 6.9 percent. The National Assembly’s approval of a bill to remove barriers between banking, securities and insurance businesses triggered the jump together with expectations of stellar second-quarter earnings. Top lender Kookmin Bank rose 1.9 percent. Samsung Securities gained 1.3 percent.
Volume was heavy at 410.5 million shares worth 7.2 trillion won with gainers outnumbering losers, 488 to 280.
The tech-heavy Kosdaq added 7.31 points, or 0.9 percent. Losers outpaced winners, 483 to 438, with more than 505 million shares worth 2.2 trillion won changing hands.
By Hwang Young-jin Staff Writer [firstname.lastname@example.org]