The benchmark KOSPI crawled up 2.1 percent to 1,902.81 Monday on hopes that new leadership in Greece and Italy would help resolve the debt crisis in Europe.
Gains were led by tech shares after investors rushed to grab Hynix Semiconductor Inc. stock on the news that the world’s No. 2 computer memory chip maker will issue new shares to prospective buyer SK Telecom at 23,000 won ($20.41) each. Hynix advanced 3.48 percent to 22,300 won apiece. The KOSPI opened strongly on hopes that new technocratic leaders in Italy and Greece will push harder to clear their debts. The Korean won moved up 3.5 won against the dollar and closed at 1,123.2.
“Major exporters across all sectors shared the gains today. There were returning investors from those who sold more than intended on darkening outlooks,” Kim Byung-yeon, a research fellow at Woori Securities & Investment said.
“KOSPI may hover around the 1,900 level for some time and the ups and downs depend on how the European debt crisis unfolds and how business sentiment in the U.S. changes,” Kim said.
Institutional buyers bought a net 259.4 billion won in shares. Foreign investors bought net 130.4 trillion won in shares.
Samsung Electronics Inc. advanced 1.32 percent to 996,000 won apiece, while Hyundai Motor Co. advanced 1.31 percent to 231,600 a share. LG Display gained 6.92 percent to 23,950 won.
Hopes rose after Italy’s president appointed former European Commissioner Mario Monti on Sunday to lead the debt-ridden government. Greece named Lucas Papademos, a former European Central Bank policymaker, as the new prime minister who is now tasked with implementing radical reforms to save the country from bankruptcy.
By Cynthia J. Kim (
cynthiak@heraldcorp.com)
