Shares jump 2.62% on ECB chief’s pledge

South Korean stocks rallied 2.62 percent Friday as cheering remarks by the European Central Bank chief offered investors a sense of reassurance against the persistent eurozone crisis, analysts said. The local currency gathered ground against the U.S. dollar.

The benchmark Korea Composite Stock Price Index rose 46.69 points to close at 1,805.92. Trading volume was moderate at 393.4 million shares worth 4.54 trillion won ($3.95 billion) with gainers far outstripping losers 641 to 186.

The ECB President Mario Draghi vowed on Thursday to do what it takes to protect the euro, raising hopes for a direct intervention by the ECB, including bond purchases.

“The ECB meant to send a clear and strong message across that it’s not facing away from the fiscal meltdown,” said Kim Ji-hyung, an analyst at Hanyang Securities Co.

Kim said slim chances exist for the ECB to buy debts, but there is a strong chance for a rate cut at the policy meeting on Aug. 2, as part of an effort to revive the ailing economic bloc.

Lending support to the KOSPI’s rise, foreigners snapped a four-day selling streak and bought a net 472.0 billion won.

Blue chip exporters fueled the key index on the back of upbeat quarterly performance. Tech giant Samsung Electronics surged 5.20 percent to 1,233,000 won, with leading automaker Hyundai Motor rising 2.24 percent to 228,500 won. Their bullish gains came as they logged record quarterly operating profits.

Financial firms also finished bullish. No. 1 lender Woori Finance advanced 3.88 percent to 10,700 won and third-largest player Shinhan Financial shot up 3.58 percent to 34,750 won.

The local currency ended at 1,138.30 won against the greenback, up 8.6 won from Thursday’s close on the back of the KOSPI’s gains, dealers said. (Yonhap News)