South Korean stocks ended 1.8 percent higher Tuesday as investors shrugged off recent eurozone sovereign downgrades and snapped up shares of blue-chip banks and exporters, analysts said. The local currency gathered ground against the U.S. dollar.
The benchmark KOSPI soared 33.47 points to 1,892.74. Trading volume was heavy at 426.6 million shares worth 5.91 trillion won ($5.16 billion), with gainers outnumbering losers 553 to 269.
Foreigners scooped a net 393.3 billion won worth of shares, extending their buying streak to a sixth straight session.
“The ratings action on the European Financial Stability Facility after the downgrades of nine eurozone countries had limited impact as they were largely expected,” said Kim Young-jun, an analyst at SK Securities Co.
On Monday, Standard & Poor’s Ratings Services cut its credit rating of the 440 billion euro rescue fund, a move that was deemed reasonable following the agency’s downgrades on the ratings of nine eurozone countries last week.
“Although concerns remain, the move exposed the negative factors and instead helped stem investor worries on uncertainties,” Kim said.
Analysts also said France’s successful debt auction, the first since Standard & Poor’s stripped its top-notch rating, helped ease market jitters.
Shares gathered ground across the board, with financial shares spearheading the climb. KB Financial Group, the parent of the country’s top lender, jumped 5.31 percent to 39,650 won and No. 3 banking group Shinhan Financial Group soared 7.35 percent to 41,650 won.
Blue-chip exporters also ended on positive territory, erasing losses from the previous session. Top automaker Hyundai Motor added 2.21 percent to 231,000 won and Hyundai Heavy Industries, the world’s No. 1 shipyard, advanced 3.66 percent to 297,500 won.
In contrast, telecommunications issues closed lower. Industry leader SK Telecom lost 1.82 percent to 134,500 won and smallest player LG Uplus fell 1.17 percent to 6,780 won.
The local currency closed at 1,145.5 won against the greenback, up 9.2 won from Monday’s close, as investors snapped up the local currency amid the KOSPI’s rise and eased fears over the eurozone, dealers said.
(Yonhap News)
