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THE INVESTOR] South Korean shares closed higher on Aug. 1, as foreigners scooped up market heavyweights after lackluster US economic data abated expectations for an interest rate hike in the coming months. The Korean won rose to the highest level since June 2015 against the greenback.
The benchmark Korea Composite Stock Price Index added 13.09 points, or 0.67 percent, to 2,029.61. Trade volume was moderate at 341.3 million shares worth 4.66 trillion won (US$4.20 billion), with losers outnumbering gainers 425 to 381.
The stock trading hour was extended for 30 minutes to close at 3:30 p.m. starting from Aug.1.
The index started on a positive note as investors took a cue from the rally in Wall Street, with the S&P 500 index hitting a record high on July 29.
Offshore investors extended their buying streak for 18 straight sessions as weak US economic growth data lowered odds of an interest rate hike in the next few months.
“Foreigners continued to remain net buyers to support the index, mostly loading large caps that posted brisk second-quarter earnings,” Kim Dae-jun, an analyst at Korea Investment & Securities, said. “Relatively undervalued stocks in IT and material sectors also traded bullish.”
Foreigners bought a net 258.88 billion won, while institutions and retail investors each offloaded a net 202.68 billion and 103.52 billion won.
Tech shares were among the biggest gainers.
Market kingpin Samsung Electronics surged 1.75 percent to 1,566,000 won, continuing its rally after posting robust second-quarter earnings, and chip giant SK hynix climbed 1.45 percent to 34,900 won.
Auto shares gained. Industry leader Hyundai Motor increased 2.65 percent to 135,500 won, and its sister company Kia Motors edged up 0.24 percent to 42,250 won.
In contrast, cosmetic shares slid after the customs office announced plans to limit the number of cosmetics up for duty-free sales.
Top cosmetics maker AmorePacific sank 2.06 percent to 380,000 won, and its smaller rival LG Household & Healthcare tumbled 6.05 percent to 947,000 won.
The local currency closed at 1,108.0 won against the US dollar, up 12.2 won from the previous session‘s close.
(
theinvestor@heraldcorp.com)
