[THE INVESTOR] South Korean shares advanced on Aug. 5 as the Bank of England’s monetary easing measures boosted risk appetites among foreigners. The Korean won rose against the US dollar.
The benchmark KOSPI scored 17.91 points, or 0.9 percent, to 2,017.94. Trade volume was slim at 286.19 million shares worth 4.11 trillion won (US$3.69 billion), with losers slightly outnumbering winners 408 to 404.
Foreign investors scooped up local equities after the Bank of England’s rate cut and stimulus package soothed concerns over the impact of the Brexit vote, helped by a recent recovery in oil prices.
“KOSPI underwent a brief correction as institutions tried to lock in recent gains, but foreigners are expected to remain net sellers as the recovery in oil prices and falling odds of a US interest rate hike provide upward momentum to the market,” said Kim Sung-hwan, an analyst at Bookook Securities.
Foreigners bought a net 251.7 billion won, while institutions and retail investors each offloaded a net 75.73 billion won and 200.65 billion won.
Tech shares propelled a strong finish of the index.
Samsung Electronics increased 2.97 percent to 1,562,000 won to pare earlier losses, and chip giant SK hynix advanced 3.57 percent to 34,850 won.
Cosmetics shares, which heavily rely on exports to China, slipped as Seoul‘s relations with Beijing have soured over the planned deployment of the advanced U.S. antimissile system on the Korean Peninsula.
Top cosmetics maker AmorePacific shed 2.95 percent to 362,000 won, and its smaller rival LG Household & Health Care tumbled 4.88 percent to 916,000 won.
The local currency closed at 1,110.4 won against the US dollar, up 3.6 won from Aug. 4.
(theinvestor@heraldcorp.com)
