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THE INVESTOR] South Korean shares a new high for the year Aug. 19, led by top cap Samsung Electronics’ continued rally. The local currency, however, fell against the US dollar.
The benchmark KOSPI gained 0.77 point, or 0.04 percent, to 2,056.24.
Samsung Electronics climbed 2.13 percent to a fresh record high of 1,675,000 won (US$1,500), as its Galaxy Note 7 large-size smartphone went on sale earlier in the day.
The KOSPI started the day’s trade marginally higher and wavered in a tight range. Its advance was limited by institutional investors’ selling.
Trade volume recorded 385.3 million shares worth 4.8 trillion won, with decliners outnumbering advancers 477 to 330.
Institutional investors sold a net 353 billion won worth of stocks, while foreigners and individuals net-purchased 219.4 billion won and 53 billion won worth of shares, respectively.
Some market watchers voiced concerns about the KOSPI’s heavy reliance on Samsung Electronics.
Its upswing may mean more losers in the KOSPI market.
“That’s a reason why it’s hard to cheer on Samsung Electronics’ advance,” said Lee Kyung-min, an analyst at Daishin Securities.
Cautious optimism is widespread about the KOSPI itself amid expectations of strong corporate earnings and hikes in global oil prices.
“International oil prices seem to have stably landed in the $40-per-barrel level,” said Kim Sung-hwan, a researcher at Bookook Securities. “We maintain a positive view on the domestic stock market, taking into account the momentum of improved corporate earnings and foreigners’ net-buying mode in line with the global phase of favoring risk assets.”
Other large-cap stocks were mixed. The state-run Korea Electric Power Corp. slid 1.37 percent to 57,400 won.
Leading automaker Hyundai Motor remained flat at 132,500 won and global chipmaker SK hynix rose 2.69 percent to 35,400 won.
The local currency was quoted at 1,117.55 won against the US dollar, weakening 10.35 won from the previous session’s close.
(
theinvestor@heraldcorp.com)
