Kospi rebounds ahead of BOK meeting
Published: 14 Oct. 2014, 23:35
Korean stocks rebounded yesterday as institutions and private investors scooped up shares ahead of the central bank’s monetary policy committee meeting today.
The benchmark Kospi, which rose early in the session, finished at 1,929.26, up 2.05 points, or 0.11 percent, from Monday’s close.
Institutional investors were net buyers of 249.6 billion won ($234 million) worth of shares yesterday, following the purchase of 373.8 billion won on Monday. Foreigners continued to dump shares.
Trade volume was moderate at 331.62 million shares worth 4.14 trillion won, with 515 gainers, 295 losers and 70 unchanged.
Market behemoth Samsung Electronics advanced 1.7 percent in Seoul, its biggest increase since Sept. 26. Mirae Asset Securities jumped 7.6 percent to lead advances.
However, most large-cap shares fell, with Korea Electric Power Corporation losing 4 percent, Shinhan Financial Holdings 3 percent and SK Telecom 2 percent.
Hyundai Motor, Hyundai Mobis, Kia Motors and Samsung Fire and Marine Insurance all edged down 1 percent. Naver and LG Chem gained slightly.
The won strengthened for the second straight day on speculation that some companies are converting export earnings.
The won increased 0.3 percent in value versus the dollar to close at 1,064.60 per dollar. The currency has weakened by 2.8 percent in the past month.
“Some traders and companies are snapping up the won as the dollar retreats,” said Park Dae-bong, a currency trader at Nonghyup Bank. “We have the BOK’s meeting [today] and foreign investors are still selling equities, which will limit any aggressive buying.”
One-month implied volatility in the won, a gauge of expected swings in the exchange rate used to price options, fell 18 basis points, or 0.18 percentage point, to 7.80 percent.
Government bonds declined, with the yield notes due June 2017 rising one basis point to 2.28 percent.
The yield on five-year debt climbed two basis points to 2.50 percent.
BY KIM JUNG-YOON, BLOOMBERG [[email protected]]
The benchmark Kospi, which rose early in the session, finished at 1,929.26, up 2.05 points, or 0.11 percent, from Monday’s close.
Institutional investors were net buyers of 249.6 billion won ($234 million) worth of shares yesterday, following the purchase of 373.8 billion won on Monday. Foreigners continued to dump shares.
Trade volume was moderate at 331.62 million shares worth 4.14 trillion won, with 515 gainers, 295 losers and 70 unchanged.
Market behemoth Samsung Electronics advanced 1.7 percent in Seoul, its biggest increase since Sept. 26. Mirae Asset Securities jumped 7.6 percent to lead advances.
However, most large-cap shares fell, with Korea Electric Power Corporation losing 4 percent, Shinhan Financial Holdings 3 percent and SK Telecom 2 percent.
Hyundai Motor, Hyundai Mobis, Kia Motors and Samsung Fire and Marine Insurance all edged down 1 percent. Naver and LG Chem gained slightly.
The won strengthened for the second straight day on speculation that some companies are converting export earnings.
The won increased 0.3 percent in value versus the dollar to close at 1,064.60 per dollar. The currency has weakened by 2.8 percent in the past month.
“Some traders and companies are snapping up the won as the dollar retreats,” said Park Dae-bong, a currency trader at Nonghyup Bank. “We have the BOK’s meeting [today] and foreign investors are still selling equities, which will limit any aggressive buying.”
One-month implied volatility in the won, a gauge of expected swings in the exchange rate used to price options, fell 18 basis points, or 0.18 percentage point, to 7.80 percent.
Government bonds declined, with the yield notes due June 2017 rising one basis point to 2.28 percent.
The yield on five-year debt climbed two basis points to 2.50 percent.
BY KIM JUNG-YOON, BLOOMBERG [[email protected]]
with the Korea JoongAng Daily
To write comments, please log in to one of the accounts.
Standards Board Policy (0/250자)