Buying of financial shares pushes Kospi into the blackSeoul’s main bourse closed sharply higher yesterday as institutions snapped up companies with a large market value, such as Shinhan Financial Group, that will likely benefit from the next government’s economic policies, analysts said.
The benchmark Kospi climbed 33.95 points, or 1.8 percent, to 1,878.32 after a choppy session.
Volume was moderate at 351.1 million shares worth 5.4 trillion won ($5.7 billion), with gainers outnumbering losers 411 to 375.
“Investors sought to snap up issues that will likely fare better under the new government based on the president-elect’s pledges,” said Kim Young-gak, an analyst at Hyundai Securities.
Financial shares led the market rises for a second session amid a bright industry outlook. President-elect Lee Myung-bak has pledged to ease rules preventing non-financial companies from owning financial institutions.
Kookmin Bank rose 3.7 percent to 69,900 won and Shinhan Financial Group jumped 6.8 percent. Daewoo Securities surged 9.1 percent following news reports that Lee plans to privatize it after merging it with the state-run Korea Development Bank’s investment banking unit. Hyundai Securities soared 8.2 percent on massive foreign buying.
Shipyards gained ground on record orders and expectations for bumper earnings next year. The world’s third-largest shipbuilder Daewoo Shipbuilding & Marine Engineering surged 9.1 percent amid widespread speculation over its privatization under the next government. Global industry leader Hyundai Heavy Industries gained 4.5 percent.
After a seesaw session, tech shares gained, snapping a week-long losing streak. Tech bellwether Samsung Electronics rose 0.2 percent to 560,000 won. Rival LG Electronics advanced 4.5 percent.
The secondary Kosdaq market declined 3.23 points, or 0.5 percent, to finish at 697.46 yesterday. Trade volume was 423.3 million shares, valued at 1.4 trillion won. Losing issues led gainers 563 to 385. Yonhap