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THE INVESTOR] South Korean shares closed higher on Aug. 4 as crude oil rebounded after US inventories data showed a drop in gasoline stockpiles. The Korean won firmed against the US dollar.
The benchmark KOSPI rose 5.24 points, or 0.26 percent, to 2,000.03. Trade volume was moderate at 322.82 million shares worth 3.58 trillion won (US$3.21 billion), with winners outnumbering gainers 464 to 320.
Local shares got off to a strong start following a positive lead from Wall Street as rebounding oil prices boosted investor confidence.
West Texas Intermediate crude jumped 3.3 percent to settle at $40.83 a barrel Aug. 3, after declining 5 percent over the previous two sessions.
“Foreigners turned to net buyers after the recent drops in the wake of falling oil prices were considered rather excessive,” said Lee Jun-hee, an analyst at NH Investment & Securities.
“Institutions have been in a selling mode following the recent rally, but the market is expected to gain momentum in the coming weeks.”
Foreigners scooped up a net 41.88 billion won. Institutions dumped a net 113.12 billion won, while retail investors bought a net 46.85 billion won.
Market bellwether Samsung Electronics was steady at 1,517,000 won after news that the tech giant is in talks to take over auto parts maker Magneti Marelli, a deal estimated at US$3 billion, to diversify its business portfolio.
Korea Electric Power Corp., the state-run power provider, slipped 2.54 percent to 61,300 won, after posting weaker-than-expected second-quarter earnings in the afternoon.
Chemical shares bounced back from heavy losses from the previous two sessions.
SK Innovation, the nation’s largest refiner, jumped 3.52 percent to 147,000 won, and No. 3 S-Oil increased 2.26 percent to 77,000 won.
Auto shares retreated as the stronger local currency fueled concerns over their price competitiveness in the overseas market.
Leading automaker Hyundai Motor declined 1.14 percent to 130,500 won, and its sister company Kia Motors inched down 0.49 percent to 40,800 won.
The local currency closed at 1,114.0 won against the US dollar, up 3.6 won from Aug. 3.
(
theinvestor@heraldcorp.com)
