Korean stocks finished 0.25 percent higher on Thursday as foreign investors continued buying local shares following the Federal Reserve’s pledge to keep interest rates low, analysts said. The local currency climbed against the U.S. dollar.
The benchmark KOSPI added 4.95 points to reach 1,957.18, extending a winning streak to a fourth straight session. Trading volume was moderate at 403 million shares worth 5.46 trillion won ($4.86 billion) with gainers leading losers 511 to 286.
“After the KOSPI’s sharp rallies last week, the gains have slowed,” said Lee Jae-man, an analyst at Tong Yang Securities Inc.
“Foreign investors purchased more local stocks after the Fed said it would keep interest rates low for a longer-than-expected period, but institutional investors took profits.”
Growth of the South Korean economy reached a two-year low at 0.4 percent gain in the final quarter of 2011 as the public debt crisis in Europe dampened exports and private consumption turned negative, the central bank said.
The latest gross domestic product figure hovered below market expectations but had little impact on the stock market, analysts said.
“Most investors expected the fourth quarter would be bad,” Lee said. “But the report was not a market mover.”
Foreign investors remained net buyers of Seoul stocks for the 11th straight session, propping up shares of financial companies and tech exporters.
Woori Finance Holdings edged up 0.47 percent to 10,600 won and KB Financial Group, parent of top lender Kookmin Bank, drifted up 0.24 percent to 41,300 won.
Tech shares were mixed after previous gains sparked by Apple’s stellar earnings results earlier this week.
LG Display, the world’s second-largest maker of liquid crystal display panels, dropped 1.93 percent to 28,000 won one day ahead of its earnings report. But LG Electronics rose 0.52 percent to 77,500 won.
Hyundai Motor fell 2.14 percent to, 229,000 won after its fourth-quarter earnings results came in below a market forecast.
The local currency closed at 1,122 won to the greenback, up 3.9 won from Wednesday’s close, as overseas investors snapped up local stocks, dealers said.
(Yonhap News)
