South Korean stocks closed 2.19 percent higher on Monday as investor sentiment was underpinned by prospects that the International Monetary Fund may consider a bailout for Italy, analysts said. The local currency rose against the U.S. dollar.
The benchmark Korea Composite Stock Price Index jumped 38.88 points to 1,815.28. Trading volume was moderate at 272.2 million shares worth 4.2 trillion won ($3.63 billion) with gainers outpacing losers 555 to 267.
“Speculation about the IMF’s help for Italy lifted investor sentiment. Tech shares led the market’s gains on the back of sharp sales over the Thanksgiving weekend,” said Bae Sung-young, an analyst at Hyundai Securities Co. Bae said that investors will await this week the results of finance ministers’ meeting in the European Union.
Speculations that the IMF may help a debt-ridden Italy raised optimism that the deepening eurozone debt crisis may ease.
Sentiment remained murky, however, as global credit ratings agency Moody’s Investors Service warned that the contagion of the eurozone debt crisis may threaten the sovereign ratings of all European countries.
The stock index rose as much as 2.27 percent at one point, helped by buying momentum by retail and institutional investors.
Foreign investors unloaded holdings worth 197.2 billion won on the main bourse.
Most shares ended in positive territory, but tech shares stood out on expectations that brisk sales in Black Friday sales in the U.S. may continue into the year-end, bolstering consumer spending and thawing frozen sentiment.
Market leader Samsung Electronics advanced 3.27 percent to 978,000 won and chip giant Hynix Semiconductor jumped 7.13 percent to 23,300 won. Flat panel giant LG Display rose 6.3 percent to 24,450 won.
Financial shares gained ground. Top banking group Woori Finance rose 2.77 percent to 9,650 won and its rival KB Financial Group added 2.86 percent to 37,700 won.
Builders and oil refiners also gained momentum. Leading construction firm Daewoo Engineering & Construction added 3.54 percent to 8,770 won and top refiner SK Innovation rose 2.82 percent to 164,000 won.
The local currency closed at 1,154.3 won to the greenback, up 10.5 won from Friday’s close, as the KOSPI gained ground, dealers said.
(Yonhap News)
