South Korean stocks ended 0.49 percent higher on Wednesday as U.S. President Barack Obama’s re-election helped erase policy uncertainties, analysts said. The local currency climbed against the U.S. dollar.
The benchmark Korea Composite Stock Price Index rose 9.38 points to 1,937.55. Trading volume was moderate at 548.6 million shares worth 4.5 trillion won ($4.1 billion), with gainers outnumbering decliners 401 to 396.
“Investor jitters over U.S. fiscal issues had lingered ahead of the presidential election. Obama’s victory helped stave off those uncertainties,” said Eom Tae-woong, an analyst at Bookook Securities Co.
“But the re-election does not translate to an upward momentum for the KOSPI. Investors are likely to stay cautious due to China’s power shift and eurozone issues,” said Eom.
Shinhan Investment Corp. Lee Kyung-soo backed the view. Lee said Obama’s re-election is likely to dissolve policy uncertainties, adding that investor sentiment on the IT and healthcare industries, which are known for their support for the Democratic Party, will become favorable.
Blue-chip exporters largely gained ground, with market bellwether Samsung Electronics adding 0.96 percent to 1,362,000 won.
Hyundai Motor and Kia Motors rose for a second session.
(Yonhap News)
