South Korean stocks rebounded 1.46 percent Tuesday as institutions scooped up shares following the U.S. markets’ rally, analysts said. The local currency rose against the U.S. dollar.
Snapping a four-session losing streak, the benchmark KOSPI gained 26.73 points to 1,853.22. Trading volume was moderate at 383.2 shares worth 4.86 trillion won ($4.18 billion), with gainers outpacing losers 591 to 238.
“After undergoing losses for the last four days, investors increased their bets, boosted by a Wall Street rally and a pickup in other Asian markets,” said Eric Kim, an analyst at Woori Securities Co.
Institutions snapped up a net 140.4 billion won while foreigners dumped a net 9.9 billion won.
However, jitters over the eurozone debt crisis still hang over the market, he said, adding an upward momentum will be short-lived unless tech big caps and other blue chips rebound.
Shares gained ground across the board, with shipbuilders and heavy machine makers leading the rise. Global shipbuilding leader Hyundai Heavy Industries Co. jumped 4.03 percent to 284,000 won and major power equipment maker Doosan Heavy Industries Co. surged 4.13 percent to 65,600 won.
Securities companies finished bullish, with state-owned Woori Investment & Securities Co. soaring 6.6 percent to 11,300 won and No. 3 player Hyundai Securities Co. advancing 3.12 percent to 8,930 won.
Market heavyweights also rallied. Top-cap Samsung Electronics Co. edged up 0.98 percent to 1,026,000 won following a four-day falling run and top automaker Hyundai Motor Co. rose 2.26 percent to 226,500 won.
Leading chemical maker LG Chem added 1.57 percent to 324,000 won and top refiner SK Innovation climbed 2.25 percent to 159,000 won.
South Korea’s smallest automaker Ssangyong Motor Co. jumped by the daily limit of 15 percent to 7,800 won for the second straight session on the back of a big investment plan announced by its largest shareholder, Mahindra & Mahindra Ltd.
In contrast, electricity monopoly Korea Electric Power Corp. closed flat at 27,400 won and Korea Gas Corp dipped 1.87 percent to 44,650 won.
The local currency ended at 1,156.50 won against the greenback, up 7.1 won from Monday’s close, as offshore investors unloaded their dollar holdings.
(Yonhap News)
