Won Approaches 1,400, KOSPI Surpasses 1,160
By Kim Tae-gyu
Staff Reporter
The Korean financial markets were showing signs of stabilizing, Tuesday, as both share prices and the domestic currency substantially advanced over the past few days.
The benchmark KOSPI rocketed 38.42 points, or 3.41 percent, to close at 1,163.88, the highest since Feb. 17. The junior Kosdaq also jumped 6.89 points, or 1.78 percent, to 394.66.
The Korean won extended its winning streak to three days against the greenback as it appreciated 2.19 percent, or 31.5 won, to end at 1,408.5 won per dollar. Over the three days, the won has jumped 5.9 percent.
The domestic currency has won six out of last seven sessions and nine among the last 11 trading days.
This contrasts to early this month when the won-dollar rate once approached the 1,600-won level amid concerns of a second financial crisis.
``Institutional players and overseas investors propped up the stock market. If there is no bad news, the KOSPI may approach 1,200, and the won is expected to remain strong against the dollar,'' said a Seoul analyst, who asked not to be named.
``But investors are recommended not to forget that there still remain many time bombs, such as the potential sovereign defaults in Eastern European countries,'' he said.
Institutions posted net buying amounting to 498.7 billion won and foreigners netted 29 billion won in purchases. However, individual investors sold off a net 622.9 billion won.
Financial outfits spearheaded the upsurge, such as the brokerage industry (11.3 percent), other financial firms (7.73 percent) and banks (7.04 percent).
KB Financial Group, the holding company of Korea's top lender Kookmin Bank, rose 6.77 percent to 34,700 won. Runner-up Shinhan Financial Group also advanced 9.57 percent to 25,200 won.
Market bellwether Samsung Electronics, the world's biggest maker of memory chips and flat-panel displays, gained 2.1 percent to 534,000 won, and its cross-city rival LG Electronics went up 2.94 percent to 87,500 won.
A total of 718.6 million shares changed hands worth 5.72 trillion won. Winners overwhelmed losers 667 to 167 with 16 shares, reaching the daily limit up of 15 percent.