Samsung’s earnings give fillip to the marketsStocks closed higher Tuesday led by gains in tech and autos as investor sentiment got a boost from Samsung Electronics’ better-than-anticipated third-quarter earnings. The won advanced against the dollar.
The benchmark Kospi surged 24.52 points, or 1.21 percent, to close at 2,046.25. Trading volume was moderate at some 431 million shares worth about 4.14 trillion won ($3.47 billion), with gainers outnumbering losers 532 to 284.
Samsung said its third quarter operating profit was estimated at 7.7 trillion won, beating the market consensus of 6.99 trillion won. Samsung’s third-quarter earnings more than halved from a year earlier, but investors are betting that the world’s largest chipmaker and smartphone vendor will see a recovery, according to Choi Yoo-june, an analyst at Shinhan Investment.
“Samsung Electronics announced a better-than-expected third-quarter performance, helped by a recovery in the mobile device and display sectors. While there remain doubts over a recovery in the semiconductor market in the fourth quarter, the market expects a recovery early next year,” Choi said.
Foreigners continued to offload local shares, dumping a net 46 billion won worth of local shares and extending their selling streak to a seventh consecutive session.
Institutions purchased a net 303 billion won, while individuals dumped a net 254.6 trillion won.
Samsung Electronics spiked 2.41 percent to 48,900 won, while most other major caps also closed in positive terrain.
No. 2 chipmaker SK Hynix added 0.75 percent to 80,900 won, with automaker Hyundai Motor surging 1.17 percent to 129,500 won and its smaller affiliate Kia Motors adding 2.10 percent to 43,750 won.
Auto parts maker Hyundai Mobis slipped 0.20 percent to 243,500 won, but chemicals firm LG Chem soared 2.25 percent to 295,500 won.
The local currency closed at 1,193.10 won to the dollar, down 3.50 won from the previous session’s close.
The secondary Kosdaq gained 8.20 points, or 1.31 percent, to close at 635.41.
Bond prices, which move inversely to yields, were mixed. The yield on three-year bonds lost 3.6 basis points to 1.267 percent, and the yield on 10-year bonds added 3.3 basis points to 1.56 percent.
BY KIM BYUNG-WOOK, YONHAP, [firstname.lastname@example.org]