Shares gain on eased fiscal cliff woes

South Korean stocks closed 0.93 percent higher Monday as waned fear over the U.S. fiscal cliff whetted investor appetite, analysts said. The local currency gathered ground against the U.S. dollar.

The Korea Composite Stock Price Index rose 17.27 points to finish at 1,878.10. Trading volume was light at 345.7 million shares worth 3.20 trillion won ($2.93 billion) with advancers outstripping decliners 600 to 236.

“Talks between President Obama and the Congress over the fiscal cliff last week reflect that they’re narrowing down the differences because it’s imperative that they reach an agreement before the end of the year,” said Kim Chul-joong, an analyst at Korea Investment & Securities Co.

With the holiday shopping season around the corner, U.S. stock markets will likely get a further boost from an uptrend in consumer shares and expected signs of recovery in the housing market, Kim added.

“Our view is that the KOSPI has pretty much bottomed out and will likely track U.S. markets in the short term.”

Institutional investors scooped up a net 170.2 billion won, extending their buying spree to a fourth session. Program buying also fueled the KOSPI with a net 286.9 billion won.

Tech and shipyard blue chips were bullish, with market behemoth Samsung Electronics rising 1.91 percent to 1,332,000 won and leading shipbuilder Hyundai Heavy Industries soaring 2.78 percent to 203,000 won.

Steelmakers finished in positive territory. No. 1 player POSCO gained 0.32 percent to 317,000 won and third-largest Dongkuk Steel Mill jumped 2.73 percent to 13,150 won.

In contrast, shipping lines lost ground on concerns over a spike in crude oil prices from a conflict between Israel and Palestine in the Middle East. Hanjin Shipping fell 0.93 percent to 10,700 won and Hyundai Glovis, a logistics company, dipped 2.09 percent to 210,500 won. (Yonhap News)