Seoul shares rebound to end 3-day fall

South Korean stocks rebounded on Tuesday, helped by massive buying by foreign investors and institutions. The local currency fell against the U.S. dollar. 

Starting the day positively, the benchmark Korea Composite Stock Price Index (KOSPI) ended at 1,967.01, up a meaningful 1.20 percent, or 23.38 points from Monday’s close. The gain ended the three-day losing streak that caused the bourse to fall below the 1,950 mark.

Trading volume was light at 241.41 million shares worth 4.09 trillion won ($3.72 billion), with advancers outpacing decliners 464 to 318.

The rise in stock prices comes after the chief of the European Central Bank hinted that further stimulus measures could be pursued if ongoing recovery efforts are not sufficient to prop up the eurozone. A stimulus package could fuel demand for goods, helping South Korea and other exporters like China.

Market watchers added that a technical rebound after recent losses and bargain hunting further helped the KOSPI to make a comeback.

“Buying up of stocks by foreign investors, who exert considerable sway, played a leading role in the rise of the stock prices,” Lim Dong-rak, a researcher at Hanyang Securities Co., said.

He added that changes in the exchange rates that could favor local exporters may have helped push up stock prices, although the weak yen remains a source of concern. Tech giant Samsung Electronics, the flagship company of Samsung Group, moved up 1.24 percent to 1,220,000 won per share, with global appliance manufacturer LG Electronics remaining flat at 64,100 won. Memory chip giant SK hynix moved up 1.09 percent to 46,400 won.

The country’s No. 1 carmaker, Hyundai Motor, remained unchanged at 177.500 won, while its smaller affiliate, Kia Motors, ended the day up 0.36 percent to 56,000 won.

Shares of top steelmaker POSCO rose 0.49 percent to 306,500 won, while LG Chem, one of the largest producers of rechargeable batteries, gained 0.48 percent to 208,500 won.

The local currency ended at 1,099.0 won to the U.S. dollar, down 5.1 won from the previous session. (Yonhap)