South Korean stocks Monday staged a spectacular comeback, surging by the largest margin in more than five months, as investors picked up blue chips on eased concerns over oil price hikes and a credit crisis in the U.S.
The benchmark Korea Composite Stock Price Index (KOSPI) rose 52.93 points, or 3.51 percent, to end at 1,562.92. It marked the largest percentage climb since Feb. 14 when the index gained 4.02 percent.
Volume was moderate at 291.45 million shares worth 5.06 trillion won ($4.97 billion), with gainers outpacing losers 641 to 171.
Samsung Securities, the largest brokerage by market value, jumped 8.54 percent to 64,800 won and second-ranked Mirae Asset Securities surged 12.36 percent to 100,000 won. Top lender Kookmin Bank rose 7.18 percent to 56,700 won.
Massive institutional and foreign buying sent construction shares soaring. No. 1 builder Daewoo Engineering & Construction surged 10.91 percent to 12,200 won.
Steel and tech shares were also among the marked gainers. Top steel maker POSCO rose 3.28 percent to 504,000 won and tech giant Samsung Electronics jumped 2.92 percent to 599,000 won.
Airline companies and other oil-sensitive transportation shares also bounced back on expectations that eased oil price hikes will help reduce their operationg costs.
Insurance issues, however, lost ground. No. 1 non-life insurer Samsung Fire & Marine Insurance fell 3.87 percent to 186,500 won after announcing that it will lower its auto insurance premiums
starting next month.
On Friday, crude prices fell $0.41 in New York to settle at $128.88 a barrel on expectations that the slowing economy in the U.S. could result in a drop in demand for fossil fuels. The oil prices had retreated more than $15 over the previous four trading sessions.
The tech-heavy Kosdaq market rose 1.67 percent to 531.25 on retail investors' bargain hunting.
The Korean currency closed at 1,018 won against the dollar, down 4.2 won from Friday's close, on increased demand for the greenback by importers and foreign investors.