South Korean stocks finished 2.27 percent higher on Tuesday as foreign investors picked up tech exporters and shipyards on eurozone optimism, analysts said. The local currency climbed against the U.S. dollar.
The benchmark Korea Composite Stock Price Index advanced 41.24 points to 1,856.52. Trading volume was moderate at 323 million shares worth 6.21 trillion won ($5.41 billion) with 606 gainers leading 229 losers.
“Reports that the International Monetary Fund would rescue Italy and the U.S. would actively respond to the eurozone crisis helped reduce investor preference for safe assets,” said Lee Kyung-soo, an analyst at Shinyoung Securities Co.
However, the gain in the local stock market may be short-lived as concerns about the U.S. budget deficit lingers, the analyst added.
Foreign investors added a net 378.9 billion won worth of stocks, raising holdings of blue-chip tech and auto exporters in particular. Institutional investors cut a net 956.7 billion won.
Tech exporters led the advance, driven up by brisk sales of consumer electronics during the U.S. holiday season. Market heavyweight Samsung Electronics was up 2.76 percent at 1,005,000 won and LG Electronics shot up 4.18 percent to 72,200 won.
LG Display, the world’s No. 2 supplier or liquid crystal display panels, spiked 6.13 percent to 25,950 won as investors seemed to judge that the worst has passed for the flat-screen panel maker.
Shipyards gained ground on expectations for improved ship orders. Hyundai Heavy Industries, the world’s largest shipbuilder, climbed 4.18 percent to 274,000 won and its smaller affiliate Hyundai Mipo Dockyard soared 5.69 percent to 111,500 won.
The local currency finished at 1,145.4 won to the greenback, up 8.9 won from Monday’s close, as overseas investors snapped up domestic stocks, dealers said.
(Yonhap News)
