South Korean stocks closed 0.37 percent higher Tuesday on rising hopes for additional U.S. stimulus, analysts said. The local currency gathered ground against the U.S. dollar to a 15-month high.
The Korea Composite Stock Price Index rose 7.20 points to finish at 1,964.62. Trading volume was moderate at 399.7 million shares worth 4.4 trillion won ($4.16 billion) with decliners outstripping advancers 413 to 385.
“Local shares continued to trade almost flat as investors took to the sidelines amid the prolonged U.S. fiscal cliff issue,” said Bae Sung-young, an analyst at Hyundai Securities Co.
“However, the main index managed to edge up following gains in steelmakers and construction firms,” Bae said. “An improving Chinese economy also gave upward momentum.”
In addition, the Federal Open Market Committee meeting scheduled this week also boosted investor sentiment as it may come up with further stimulus measures, Bae added.
Foreign investors scooped up a net 193.4 billion won, extending their buying spree to a ninth trading session. Retail investors offloaded a net 281.4 billion won.
Shipbuilders traded bullish as investors sought undervalued shares, with No. 1 player Hyundai Heavy Industries soaring 3.92 percent to 225,500 won, while Samsung Heavy Industries added 3.05 percent to 38,900 won.
Construction firms also gathered ground, with No. 1 builder Hyundai Engineering & Construction advancing 3.62 percent to 71,500 won, while Daewoo Engineering & Construction gained 3.14 percent to 9,540 won. (Yonhap News)
