South Korean stocks rose 0.57 percent Friday as investors were buoyed by the government’s economic stimulus plan, including a possible extra budget, analysts said. The local currency inched up against the U.S. dollar.
The benchmark Korea Composite Stock Price Index climbed 11.37 points to close at 2,004.89. Trading volume was moderate at 333.5 million shares worth 3.43 trillion won ($3.08 billion) with gainers outnumbering decliners 528 to 280.
“The fact that the government has also decided to provide the market with more liquidity like easing monetary measures in the U.S. and Japan, prompted investors to increase bets,” said Han Beom-ho, an analyst at Shinhan Investment Corp.
The South Korean government rolled out its economic stimulus plan for 2013 on Thursday, which hinted at a possible supplementary budget of 10 trillion won.
Snapping an 11-session selling spree, foreigners bought a net 132.9 billion won. Institutions also scooped up a net 159.8 billion won.
Han added any further upward momentum for the Seoul stock market will hinge on the scale of the extra budget. The government plans to announce details on the additional spending within next month. (Yonhap News)
