South Korean stocks ended higher on Monday as investors pinned hope on positive sentiment stemming from the new economic team’s policy stimulus, analysts said Monday. The South Korean won gained ground against the U.S. dollar.
After swerving in and out of positive territory, the benchmark Korea Composite Stock Price Index rose 7.32 points, or 0.35 percent, to 2,080.42. Trading volume was low at 249.47 million shares worth 3.86 trillion won ($3.75 billion), with gainers beating decliners 514 to 283.
“Despite some downside factors from abroad, anticipation of the government’s stimulus package supported the KOSPI’s rise. The trend is likely to continue for the time being,” said Lim Dong-lak, an analyst at Hanyang Securities, which forecast the KOSPI to hit 2,110 this month.
A string of policy events are scheduled in the coming weeks.
The government is set to unveil its revised tax policy on Wednesday, while the central bank’s monthly rate-setting board meeting is scheduled for Aug. 14.
Large caps closed mixed. Techs ended in the black with market bellwether Samsung Electronics rising 1.93 percent to 1,317,000 won and chip giant SK hynix jumping 3.35 percent to 47,850 won.
SK Telecom, the country’s biggest mobile carrier, ended up 2.33 percent at 263,500 won on hopes that an increase in long-term evolution subscribers will boost its second-half earnings.
Hyundai Homeshopping added 1.17 percent to 173,500 won on better-than-expected earnings in the second quarter.
Automakers ended in negative territory. The country’s top carmaker Hyundai Motor sank 2.46 percent to 237,500 won and its auto parts affiliate Hyundai Mobis fell 2.42 percent to 302,000 won.
Shares of financial firms also finished on a weak note.
State-run Woori Financial Group fell 2.44 percent to 14,000 won and Hana Financial Group shed 1.54 percent to 41,500 won.
The local currency ended at 1,033.5 won against the greenback, up 3.6 won from Friday’s close. (Yonhap)
