South Korean stocks closed 0.35 percent higher on Wednesday as speculations over stimulus measures continued to bolster investor sentiment, analysts said. The local currency rose against the U.S. dollar.
The benchmark Korea Composite Stock Price Index jumped 6.63 points to 1,874.45, gaining for a second straight session.
Trading volume was moderate at 332.6 million shares worth 4.5 trillion won ($4 billion), with gainers outnumbering decliners 451 to 344.
“There is strong hope out there that policymakers will act to stem slowing growth. This attracted foreigners to snap up shares,” said Park Sung-hoon, an analyst at Woori Investment & Securities Co. Foreigners bought local stocks for the third straight session.
Park also said speculation over Samsung Electronics’ earnings guidance to be released on Friday shored up the KOSPI, adding the index is likely to move upwards during the remaining week.
Blue-chip exporters gathered ground. Samsung Electronics, the world’s No. 1 memory chip maker, added 1.36 percent to 1,191,000 won. Analysts estimate the company is likely to have posted a record operating profit of 6.7 trillion won in the second quarter, compared with 5.8 trillion won in the January-March period.
Automakers were also bullish, with Hyundai Motor gaining 1.73 percent to 235,500 won and its smaller affiliate Kia Motors rising 1.36 percent to 74,500 won.
NHN, the operator of the country’s No. 1 Internet portal, surged 4.25 percent to 257,500 won on views it will strongly benefit from the mobile advertisement market.
In contrast, defensive shares ended in negative territory. KT&G, the country’s top tobacco and ginseng product manufacturer, slumped 2.6 percent to 78,700 won. Food giant CJ CheilJedang closed at 309,000 won, down 4.04 percent from the previous close.
The local currency closed at 1,135.8 won against the greenback, up 2.5 won from Tuesday’s close on the back of foreign stock buying and the KOSPI’s rise, dealers said.
(Yonhap News)
