ID :
210210
Thu, 09/29/2011 - 11:00
Auther :
Shortlink :
https://oananews.org//node/210210
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Seoul shares rally 2.68 pct on European hope
SEOUL, Sept. 29 (Yonhap) -- South Korean stocks rebounded 2.68 percent on Thursday as foreigners snapped up shares on hopes that German lawmakers would approve a eurozone bailout plan, analysts said. The local currency fell against the U.S. dollar.
After opening nearly 10 points lower, the benchmark Korea Composite Stock Price Index (KOSPI) jumped 46.2 points to 1,769.29, bouncing back from a 0.73 percent fall in the previous session. Trading volume was moderate at 369.4 million shares worth 6.6 trillion won (US$5.62 billion), with gainers outnumbering losers 611 to 229.
"Investor sentiment was boosted ahead of the German lower house's vote on a beefed-up bailout fund, and international and European inspectors' visits to Greece," said Um Tae-woong, a market analyst for Bookook Securities Co.
"As the situation seems to be better off, the stock market overcame overnight losses on Wall Street."
German lawmakers are widely tipped to pass the bill on Thursday (German time) to allow a bailout fund to buy bonds of distressed states and offer emergency loans to governments.
Foreigners remained net buyers for the third consecutive session, scooping up a net 119.7 billion won worth of shares. Institutions also led the rally, buying a net 204.2 billion won.
"As external uncertainties were relatively removed, foreigners returned to the South Korean market, leading the rally," said Um. "But in the long-term, it's still unknown and the KOSPI may fluctuate wider."
Shares gathered ground across the board with financial and tech firms steering the market to positive territory.
Samsung Electronics, the world's second-largest mobile phone maker, gained 3.72 percent to 837,000 won on a patent-licensing deal with U.S. tech giant Microsoft. Its rival LG Electronics shot up 11.15 percent to 68,800 won as investors hunted for bargains following a recent plunge in its share price.
World's second-biggest chip maker Hynix Semiconductor gained 6.33 percent to 21,850 won on speculation that memory chip prices would pick up down the road.
Hana Financial Group soared 6.73 percent to close at 34,900 won after a local newspaper reported that Hana Bank will win approval to buy Korea Exchange Bank. Hana Financial has been seeking to acquire the country's fifth-largest lender.
Shipbuilders and oil refiners were also bullish, with top shipyard Hyundai Heavy Industries rising 6.3 percent to 278,500 won and SK Innovation gaining 2.14 percent to 143,000 won.
The local currency closed at 1,173.5 won against the greenback, down 2.3 won from Wednesday's close, as investors offloaded the local unit after a central bank report that the country's current account surplus for August was the smallest in seven months, dealers said.
Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasuries gained 0.02 percentage point to 3.55 percent and the return on the benchmark five-year government bonds also rose 0.01 percentage point to 3.63 percent.
After opening nearly 10 points lower, the benchmark Korea Composite Stock Price Index (KOSPI) jumped 46.2 points to 1,769.29, bouncing back from a 0.73 percent fall in the previous session. Trading volume was moderate at 369.4 million shares worth 6.6 trillion won (US$5.62 billion), with gainers outnumbering losers 611 to 229.
"Investor sentiment was boosted ahead of the German lower house's vote on a beefed-up bailout fund, and international and European inspectors' visits to Greece," said Um Tae-woong, a market analyst for Bookook Securities Co.
"As the situation seems to be better off, the stock market overcame overnight losses on Wall Street."
German lawmakers are widely tipped to pass the bill on Thursday (German time) to allow a bailout fund to buy bonds of distressed states and offer emergency loans to governments.
Foreigners remained net buyers for the third consecutive session, scooping up a net 119.7 billion won worth of shares. Institutions also led the rally, buying a net 204.2 billion won.
"As external uncertainties were relatively removed, foreigners returned to the South Korean market, leading the rally," said Um. "But in the long-term, it's still unknown and the KOSPI may fluctuate wider."
Shares gathered ground across the board with financial and tech firms steering the market to positive territory.
Samsung Electronics, the world's second-largest mobile phone maker, gained 3.72 percent to 837,000 won on a patent-licensing deal with U.S. tech giant Microsoft. Its rival LG Electronics shot up 11.15 percent to 68,800 won as investors hunted for bargains following a recent plunge in its share price.
World's second-biggest chip maker Hynix Semiconductor gained 6.33 percent to 21,850 won on speculation that memory chip prices would pick up down the road.
Hana Financial Group soared 6.73 percent to close at 34,900 won after a local newspaper reported that Hana Bank will win approval to buy Korea Exchange Bank. Hana Financial has been seeking to acquire the country's fifth-largest lender.
Shipbuilders and oil refiners were also bullish, with top shipyard Hyundai Heavy Industries rising 6.3 percent to 278,500 won and SK Innovation gaining 2.14 percent to 143,000 won.
The local currency closed at 1,173.5 won against the greenback, down 2.3 won from Wednesday's close, as investors offloaded the local unit after a central bank report that the country's current account surplus for August was the smallest in seven months, dealers said.
Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasuries gained 0.02 percentage point to 3.55 percent and the return on the benchmark five-year government bonds also rose 0.01 percentage point to 3.63 percent.
