Seoul shares close higher on eased Brexit concerns

[THE INVESTOR] South Korean stocks closed higher on June 20 on eased concerns over the UK’s exit from European Union following a lawmaker’s murder.

The benchmark Korea Composite Stock Price Index increased 27.72 points, or 1.42 percent, to close at 1,981.12. Trade volume was moderate at 385 million shares worth 3.9 trillion won (US$3.3 billion), with winners outnumbering losers 658 to 169. 

The KOSPI rose from the revived risk-on appetite after the latest Brexit polls showed voters favor Britain remaining in the EU, analysts said.

US stocks closed lower on June 17 ahead of this week’s vote.

Analysts said Brexit is a crucial issue that is likely to affect the global financial markets throughout this week.

“Volatility will likely remain high until Thursday’s vote though Jo Cox’s murder last week has reduced bets the Britain will vote for Brexit,” Eugene Securities economist Lee Sang-jae said.

Foreigners bought a net 19.33 billion won worth of stocks, and institutions were net buyers of local stocks worth 116.96 billion won. Individuals sold a net 182.53 billion won, keeping the index from rising further.

Most large caps advanced. Market front-runner Samsung Electronics jumped 0.4 percent to 1,431,000 won to support the broader market. The state-run Korea Electric Power Corp. gained 2.2 percent to 59,900 won.

Among those who saw loss, refiner giant S-Oil tumbled down 1.7 percent to 77,300 won, and top telecom player SK Telecom slid 0.2 percent to 209,500 won.

The local currency closed at 1,160.80 won against the US dollar, up 11.90 won from the previous session‘s close.

(theinvestor@heraldcorp.com)