South Korean stocks closed 1.49 percent higher Monday on rising hope of the settlement of the fiscal crisis in Cyprus, analysts said. The local currency gained against the U.S. dollar.
The benchmark Korea Composite Stock Price Index advanced 28.96 points to 1977.67. Trading volume was low at 264.3 million shares worth 3.38 trillion won ($3.02 billion), with gainers outnumbering decliners 540 to 266.
“The stock market gathered ground following the eased concerns over the fiscal crisis in Cyprus,” said Kang Hyun-gie, a researcher at I’M Investment & Securities Co.
The International Monetary Fund and the eurozone countries earlier agreed to provide Cyprus with a bailout worth 10 billion euros ($12.9 billion) in a bid to prevent the country from going bankrupt.
Negotiations were stalled last week as the parliament of Cyprus rejected a tax proposal on bank deposits, a condition the IMF said it must have in order to get the rescue fund.
The troubled European nation, however, is reported to have reached a final deal on Monday to receive the bailout fund to prevent its banking system from defaulting.
“Meanwhile, the growth is limited as investors are still taking a wait-and-see stance on the economic recovery of the United States and other eurozone countries such as Italy,” Kang added.
Foreigners offloaded a net 90 billion won worth of local shares, and retail investors sold a net 63.1 billion won. In contrast, institutions scooped up a net 153.7 billion won.
Tech giants gathered ground, with market behemoth Samsung Electronics rising 2.75 percent to 1,495,000 won, and top chipmaker SK hynix climbing 2.65 percent to 29,050 won. (Yonhap News)
