Shares gain on institutional buying

Published : Oct 31, 2012 - 20:12 Updated : Oct 31, 2012 - 20:12

South Korean stocks closed 0.66 percent higher on institutional buying on Wednesday, despite the market fretting over the U.S. presidential election next week, analysts said. The local currency gathered ground against the U.S. dollar.

The benchmark Korea Composite Stock Price Index finished up 12.50 points to 1,912.08. Trading volume was moderate at 391.7 million shares worth 3.76 trillion won ($3.44 billion) with gainers outpacing losers 562 to 257.

“The new U.S. administration will most likely face political frictions as to how to revive the economy and deal with the fiscal cliff concerns. Until then, the market seems to have no choice but bear this jittery climate,” said Cho Yong-hyun, an analyst at Hana Daetoo Securities Co.

While uncertainties remain, the Seoul bourse got a boost from institutional and program buying, worth a net 213.7 billion won and a net 102.9 billion won each, as an additional monetary easing by the Bank of Japan on Tuesday gave a sense of relief to investors, Cho added.

The BOJ said it will expand its asset purchase program to 91 trillion yen (US$1.14 trillion) from 80 trillion yen in a bid to fuel growth.

Most shares trended in positive territory, with chemical and food makers leading the rise. LG Chem jumped 4.08 percent to 306,000 won and dairy maker Binggrae shot up 5.33 percent to 118,500 won.

Tech blue chips also finished bullish. Market heavyweight Samsung Electronics gained 0.92 percent to 1,310,000 won and steelmaker POSCO added 0.29 percent to 343,500 won. Local oil refiner S-Oil climbed 3.20 percent to 99,900 won on the back of upbeat third-quarter earnings.

In contrast, machineries and telecom companies lost ground, with Doosan Heavy Industries sinking 2.71 percent to 46,700 won, and No. 1 mobile carrier SK Telecom shedding 0.32 percent to 153,500 won.

The local currency ended at 1,090.70 won against the greenback, up 0.8 won from Tuesday’s close, largely due to dollar selloffs by local exporters amid the won’s continued gain, dealers said. (Yonhap News)