ID :
197235
Tue, 07/26/2011 - 10:56
Auther :
Shortlink :
https://oananews.org//node/197235
The shortlink copeid
Seoul shares end 0.85 pct higher on institutional buying
(ATTN: ADDS bond yields at bottom)
SEOUL, July 26 (Yonhap) -- South Korean stocks closed 0.85 percent higher on Tuesday as institutional investors scooped up brokerage houses on prospects for the birth of big homegrown investment banks, analysts said. The local currency rose against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) advanced 18.22 points to 2,168.70. Trading volume was moderate at 315.6 million shares worth 6.48 trillion won (US$6.16 billion) with gainers outpacing losers 524 to 322.
"The market rebounded from Monday's fall as securities companies stood out and shares of domestic-focused firms gained ground on expectations for the government's anti-inflation steps," said Han Beom-ho, a market analyst at Shinhan Investment Corp.
Han said the local stock market is likely to trade in a tight range amid stalled U.S. debt talks.
Talks over raising the U.S. debt ceiling are still in stalemate in Congress, raising fears that the world's largest economy may default on its debt. Foreign investors unloaded a net 52.6 billion won worth of local stocks on the main bourse.
Brokerage houses were in focus after the financial watchdog said it will seek to permit the establishment of large homegrown investment banks within this year. Leading securities firm Daewoo Securities rose 4.01 percent to 19,450 won and its rival Samsung Securities advanced 5.28 percent to 79,700 won.
Oil refiners gained ground after foreign brokerage houses said local oil refiners' margins would remain solid despite their lackluster second-quarter earnings. Industry leader SK Innovation climbed 4.58 percent to 217,000 won and its rival S-Oil advanced 3.92 percent to 159,000 won.
Leading chemical firm LG Chem added 2.87 percent to 466,000 won on its $10 million deal to develop lithium-ion batteries for U.S. carmakers.
But construction shares traded in negative territory. No. 3 builder Daewoo Construction & Engineering tumbled 7.33 percent to 12,650 won after Kumho Asiana Group's ailing construction affiliate Kumho Industrial sold part of its stake in Daewoo Engineering & Construction for 273 billion won in a bid to improve the group's financial health.
Samsung Electro-Mechanics, a South Korean industrial parts maker, inched down 0.77 percent to 89,900 won on its weak second-quarter earnings.
The local currency ended at 1,051.10 won to the dollar, up 5.10 won from Monday's close as stalled U.S. debt talks spurred the sale of the greenback, dealers said.
Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasuries added 0.02 percentage point to 3.84 percent and the return on the benchmark five-year government bonds rose 0.02 percentage point to 4.02 percent.
SEOUL, July 26 (Yonhap) -- South Korean stocks closed 0.85 percent higher on Tuesday as institutional investors scooped up brokerage houses on prospects for the birth of big homegrown investment banks, analysts said. The local currency rose against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) advanced 18.22 points to 2,168.70. Trading volume was moderate at 315.6 million shares worth 6.48 trillion won (US$6.16 billion) with gainers outpacing losers 524 to 322.
"The market rebounded from Monday's fall as securities companies stood out and shares of domestic-focused firms gained ground on expectations for the government's anti-inflation steps," said Han Beom-ho, a market analyst at Shinhan Investment Corp.
Han said the local stock market is likely to trade in a tight range amid stalled U.S. debt talks.
Talks over raising the U.S. debt ceiling are still in stalemate in Congress, raising fears that the world's largest economy may default on its debt. Foreign investors unloaded a net 52.6 billion won worth of local stocks on the main bourse.
Brokerage houses were in focus after the financial watchdog said it will seek to permit the establishment of large homegrown investment banks within this year. Leading securities firm Daewoo Securities rose 4.01 percent to 19,450 won and its rival Samsung Securities advanced 5.28 percent to 79,700 won.
Oil refiners gained ground after foreign brokerage houses said local oil refiners' margins would remain solid despite their lackluster second-quarter earnings. Industry leader SK Innovation climbed 4.58 percent to 217,000 won and its rival S-Oil advanced 3.92 percent to 159,000 won.
Leading chemical firm LG Chem added 2.87 percent to 466,000 won on its $10 million deal to develop lithium-ion batteries for U.S. carmakers.
But construction shares traded in negative territory. No. 3 builder Daewoo Construction & Engineering tumbled 7.33 percent to 12,650 won after Kumho Asiana Group's ailing construction affiliate Kumho Industrial sold part of its stake in Daewoo Engineering & Construction for 273 billion won in a bid to improve the group's financial health.
Samsung Electro-Mechanics, a South Korean industrial parts maker, inched down 0.77 percent to 89,900 won on its weak second-quarter earnings.
The local currency ended at 1,051.10 won to the dollar, up 5.10 won from Monday's close as stalled U.S. debt talks spurred the sale of the greenback, dealers said.
Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasuries added 0.02 percentage point to 3.84 percent and the return on the benchmark five-year government bonds rose 0.02 percentage point to 4.02 percent.
