Seoul shares up 0.22% on ECB action, upbeat data

Korean stocks advanced 0.22 percent Friday, tracking a rally in overseas markets, as investor sentiment was boosted by a second round of cash injections from the European Central Bank and improved U.S. economic data. The local currency rose against the U.S. dollar.

The benchmark Korea Composite Stock Price Index advanced 4.37 points to end at 2,034.62. Trading volume was moderate at 476 million shares worth 5.76 trillion won ($5.16 billion) with gainers leading losers 497 to 316.

The Dow Jones industrial average rose on Thursday to 2008 highs as U.S. jobless claims fell to a four-year low. Also, the ECB’s second round of mass liquidity injections into the banking system helped alleviate concerns over the eurozone crisis, analysts said.

“The market is likely to move upward for the time being without any major negative factors in sight,” said Lee Young-won, an analyst at HMC Securities Co.

A liquidity-led market rally, coupled with growing hopes for economic recovery, will further fuel the market, analysts said.

Automakers and petrochemicals led the market gain. Hyundai Motor, the country’s leading automaker, rose 1.85 percent to end at 220,000 won, and its smaller affiliate Kia Motors gained 1.41 percent to close at 71,700 won. Their combined sales in the U.S. rose 26 percent in February from a year earlier.

LG Chem, the nation’s largest chemicals maker, rose 1.38 percent to end at 404,000 won.

Steelmakers also joined the market rally with industry leader POSCO rising 1.92 percent to close at 424,000 won.

Other tech firms ended in negative terrain, however. Tech giant Samsung Electronics dropped 1.99 percent to close at 1,182,000 won, and LG Electronics, the country’s leading home appliance maker, fell 0.23 percent to close at 85,200 won.

The local currency closed at 1,115.60 won to the greenback, up 3.1 won from Wednesday’s close, on improved economic data at home and abroad, dealers said. 

(Yonhap News)