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March 20, 2010
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| Korean stocks closed 0.65 percent higher yesterday as investor sentiment was soothed by overnight gains on U.S. markets with tech and auto shares leading the advance, analysts said. The local currency rose against the U.S. dollar. The benchmark Kospi gained 10.94 points to close at 1,686.11. Trading volume was moderate at 433.3 million shares worth 4.14 trillion won ($3.65 billion), with gainers outnumbering losers 478 to 301. “Investors were relieved as concerns over the European Union’s support for Greece somewhat eased,” said Kwak Joong-bo, an analyst at Hana Daetoo Securities Co. “Foreign stock buying helped prop up the market.” Kwak said the Kospi is likely to see moderate gains down the road as woes over an early rate hike around the globe eased. A set of news related to the central bank around the world this week helped underscore the view that an early exit from emergency steps may not come. The U.S. Federal Reserve has pledged to keep borrowing costs low for an extended period, and the appointment this week of a new Bank of Korea chief widely viewed as dovish increased investor bets that a rate increase by the Korean central bank is not likely to come soon. The Kospi extended earlier gains as foreign investors increased their buying of local stocks. They bought a net 232.2 billion won on the main bourse, the sixth straight session of purchases. Automakers were in focus. Top carmaker Hyundai Motor advanced 3.14 percent and its affiliate Kia Motors jumped 5.04 percent on a report that it will expand a factory in Slovakia. Hyundai Hysco, the steelmaking unit of Korea’s largest carmaker, also rose to its highest in a decade after the company said first-quarter earnings are beating expectations on demand from automakers. Shares of the Ulsan-based unit of Hyundai Motor surged 3.8 percent, the highest close since July 1999. Market bellwether Samsung Electronics added 0.88 percent to close at 804,000 won after saying that it is seeking to target double-digit sales growth from last year and outperform its 2009 operating profit in 2010. Chip giant Hynix Semiconductor climbed 1.67 percent. The local currency ended at 1,132.70 won, up 1 won from Thursday’s close as foreign investors increased their holdings of Seoul stocks, dealers said. Yonhap, Bloomberg |
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