KOSPI Approaches 1,200, Won Strengthens to 1,392
By Kim Tae-gyu
Staff Reporter
Advocates of the March crisis scenario of Korea Inc. might feel like crawling into a hole somewhere as financial markets continue to stabilize as the world moves toward the end of March.
The benchmark KOSPI rocketed 28.56 points, or 2.44 percent, Monday, to close at 1,199.5, the highest since Feb. 9. The junior Kosdaq jumped 8.52, or 2.13 percent, to reach a year-high 409.23.
The Korean won appreciated 1.48 percent against the greenback to finish at 1,391.6 won per dollar, up 20.9 won from the previous close last Friday.
The KOSPI started on a strong note in the morning in hopes that the United States will set up a bad bank to absorb the non-performing loans of struggling financial institutes.
The index once jumped over the psychologically important 1,200 mark in the afternoon and moved into the neighborhood of the level. But it eventually failed to top the 1,200 plateau.
``Investors pin their hopes on the possibility that the bad bank will get U.S. financial companies back on track,'' said Kim Young-jun, an analyst at SK Securities.
``The KOSPI is highly likely to break through 1,200 down the road to create an upward trend. The stock market is expected to remain strong for the time being,'' he said.
Woori Securities economist Lawrence Kim is more optimistic.
``Our view is that the KOSPI might surge to 1,300 in the near term as there is some good news. The stock market shows a flurry of positive signals,'' Kim said.
``In particular, overseas investors continue to buy stocks in the Seoul bourse, thus infusing fresh funds into the market. Now the March crisis scenario seems to be a long shot,'' he said.
Indeed, foreigners extended their buying streak to five days, Monday, as they purchased a net 194.86 billion won.
Market bellwether Samsung Electronics, the world's top maker of memory chips and flat-panel displays, led the upsurge by gaining 1.29 percent to 549,000 won.
Its cross-city rivals also gained. Hynix Semiconductor soared 7.52 percent to 10,300 won and LG Electronics added 4.71 percent to 88,900 won.
A total of 4.54 million shares worth 4.64 trillion won changed hands. Winners outpaced losers 656 to 168, with nine shares reaching the daily limit up of 15 percent.