Korean shares up for 4th session in row

South Korean share prices rose for a fourth consecutive session Monday, bolstered by gains in techs and financials.

Investors, however, remain cautious ahead of a U.S. rate-setting meeting scheduled for later this week, according to analysts. 

Meanwhile, the local currency rose to the highest level of the year. The won climbed to a nine-week high as rising stocks and recovering oil prices pushed up demand for risky assets. The local currency closed at 1,186.10 won against the U.S. dollar, up 7.00 won from Friday’s close.

The benchmark Korea Composite Stock Price Index rose 0.86 points, or 0.04 percent, to finish at 1,972.27.

It opened higher to track the overnight gains in the U.S. stock market, but pared earlier gains due to selling by institutional investors.

Technology and financial stocks led gains, offsetting losses in construction and logistics shares.

Samsung Electronics rose 0.72 percent to 1,258,000 won and Samsung Life Insurance advanced 4.61 percent to 113,500 won.

On the downside, Hyundai Engineering & Construction fell 0.5 percent to 39,850 won and top automaker Hyundai Motor shed 0.34 percent to 148,500 won.

Analysts forecast that local shares won’t likely see a real rally until Thursday when the March Federal Open Market Committee meeting takes place.

On Monday, foreigners and retail investors were net buyers of a combined 219.41 billion won ($185 million) worth of stocks.

Institutions sold a net 244.65 billion won.

Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys lost 1.8 basis points to 1.532 percent and the return on the benchmark five-year government bond fell 1.2 basis points at 1.662 percent.

(khnews@heraldcorp.com)