Shares close higher on eased Europe woes

South Korean stocks rose 0.87 percent on hopes that European leaders will take strong actions to deal with the lingering debt problems at a summit later this week, analysts said. The local currency climbed against the U.S. dollar.

The benchmark KOSPI gained 16.6 points to 1,919.42. Trading volume was moderate at 396.5 million shares worth 5.7 trillion won ($5.06 billion) with gainers leading losers 577 to 256.

“Hopes are high that European leaders will move to change rules to force eurozone countries to meet deficit targets in a bid to restore market confidence,” said analyst Han Beom-ho at Shinhan Investment Corp.

“Europe seems to have come to grips with its debt crisis, trying to beef up fiscal integration of eurozone countries and strengthen rescue funds.”

He said the gains were limited, however, as investors sit on the sidelines until the summit meeting scheduled on Friday.

“Investors want to see that politicians really take actions as anticipated,” Han said.

Foreign investors unloaded a net 46.1 billion won worth of Seoul stocks on the main bourse, the third straight session of sell-offs. Institutions were buyers of a net 345.5 billion won, picking up shares for a 10th consecutive session.

Market heavyweights led the rally. World’s biggest chipmaker Samsung Electronics rose 1.15 percent to 1,056,000 won and its smaller rival LG Electronics gained 1.76 percent to 75,000 won.

Steelmakers staged a bullish run, with market leader POSCO added 1.4 percent to finish at 397,500 won and Hyundai Steel gained 1.96 percent to 104,000 won.

Builders were among the biggest winners. Top builder Hyundai Engineering and Construction jumped 2.62 percent to 70,400 and GS Engineering and Construction climbed 2.93 percent to 95,000 won.

LG Chem plunged 5.6 percent to 328,000 won on media reports that it plans to spin off its battery division next year. The country’s leading chemical maker denied the reports.

The local currency closed at 1,126.1 won, up 5.1 won from Tuesday’s close, as fading European fears stoked investor appetite for risky assets, dealers said. 

(Yonhap News)