South Korean stocks soared Tuesday to a near six-month high as the central bank’s rate cut last week whet investors’ appetite for risky assets, analysts said. The local currency gained against the U.S. dollar.
The benchmark Korea Composite Stock Price Index jumped 42.58 points, or 2.14 percent, to close at 2,029.91. Trading volume was moderate at 350.12 million shares worth 5.31 trillion won ($4.71 billion), with gainers outpacing losers 522 to 277.
Tuesday’s closing is the highest since Sept. 26, when it ended at 2,031.64.
Analysts said the central bank’s surprise move to slash the base rate induced investors to seek equity assets. The rate cut was the first since October and took the policy rate to a record low of 1.75 percent.
“The overnight gains on Wall Street also boosted investors’ sentiment,” said Lee Kyung-min, an analyst from Daishin Securities Co. “The gains from exporters also lent support to the growth.”
Foreign investors sold more shares than they bought at 501.4 billion won, while individuals sold a net 595 billion won. Institutions scooped up a net 93.4 billion won.
Tech shares led the gain, with Samsung Electronics flirting with a 52-week high of 1,500,000 won during the trading session. It closed at 1,497,000 won, up 1.84 percent from Monday.
SK hynix added 0.98 percent to 46,250 won, and LG Display climbed 2.04 percent to 32,500 won. LG Electronics moved up 1.01 percent to 60,200 won.
Carmakers also closed bullish, with No. 1 Hyundai Motor climbing 3.7 percent to 182,000 won and its auto parts affiliate, Hyundai Mobis, adding 2.58 percent to 258,500 won. Kia Motors also advanced 2.71 percent to 47,350 won.
Shipbuilders were among the key winners, with Hyundai Heavy Industries moving up 5.13 percent to 123,000 won and Samsung Heavy Industries rising 1.89 percent to 18,850 won. Daewoo Shipbuilding & Marine Engineering added 2.22 percent to 18,400 won.
The local currency closed at 1,128.90 won against the dollar, up 2.60 won from Monday’s close.
Bond prices, which move inversely to yields, ended lower. The yield on three-year Treasurys moved up 1.6 basis points to 1.872 percent, and the return on the benchmark five-year government bonds climbed 0.9 basis point to 1.994 percent. (Yonhap)
