Shares rises on stimulus hopes

Korean stocks closed marginally higher on Friday, as investors held onto an anticipation that major central banks will roll out a set of stimulus measures to boost economic growth, analysts said. The local currency fell against the U.S. dollar.

The benchmark Korea Composite Stock Price Index rose 5.81 points to finish at 1,946.40. Trading volume was moderate at 320.8 million shares worth 4.0 trillion won ($3.54 billion) with gainers outpacing losers 410 to 373.

“The gains were capped as the KOSPI has shot up for the past few days and investors took a breather. Although foreigners continued their buying mode, economic data from China weighed on the market,” said Bae Sung-young, an analyst at Hyundai Securities Co.

The Chinese government said earlier in the day that its trade surplus dropped in July to $21.5 billion on-year, falling short of the estimated $35 billion.

The key index swerved in and out of positive terrain throughout trading. Foreigners extended their buying streak for a fifth consecutive session, scooping up a net 655.5 billion won. On Thursday, they logged a record net purchase of 1.6 trillion won.

Retail and institutional investors, however, offloaded a combined net 612.9 billion won. The KOSPI has jumped 5.29 percent this week.

Shares traded mixed across the board. Blue-chip tech firms and automakers gained, while chemicals and builders slid.

Market bellwether Samsung Electronics rose 0.6 percent to 1,348,000 won and No. 1 automaker Hyundai Motor advanced 1.23 percent to 247,000 won.

Leading chemical maker LG Chem shed 0.92 percent to 324,500 won and top builder Hyundai Engineering & Construction lost 1.09 percent to 63,800 won.

The local currency ended at 1,130.40 won against the greenback, down 4.9 won from Thursday’s close, as investors opted to increase their dollar holdings amid the KOSPI’s slim gain, dealers said. (Yonhap News)