KOSPI Approaches 1,200 on US Gains
By Kim Tae-gyu
Staff Reporter
Seoul shares extended their winning streak to five days Wednesday in tune with worldwide gains boosted by the U.S. election day rally. The domestic currency also appreciated against the dollar.
The benchmark KOSPI rose 28.15 points, or 2.44 percent, to finish at 1,181.5. The junior Kosdaq edged up 5.36 points, or 1.6 percent, to 340.85. The Korean won closed at 1,266 won per dollar, up 22 won from the previous close.
``The strong Wall Street performance timed with the presidential election spurred domestic share prices,’’ Woori Securities analyst Lawrence Kim said.
``Financial markets show a clear sign of stabilizing. For the time being, the KOSPI is expected to fluctuate between 1,260 and 980,’’ he expected.
The blue-chip Dow Jones Industrial Average added 3.3 percent Tuesday and the broad-based S&P 500 jumped 4.1 percent, while the tech-centered Nasdaq Composite gained 3.1 percent.
The upward movement was triggered by hopes that President-elect Barack Obama will lead the U.S. economy out of ongoing financial distress.
The KOSPI started on a very positive note on the overnight surge of the U.S. market and at one point the index passed the psychologically-important 1,200 mark to 1,217.82.
However, individual investors started to dispose of shares in the afternoon session in order to cash in profits from the recent up tick, thus undercutting early gains.
A total of 781.46 million shares worth 7.88 trillion won changed hands. Winners overwhelmed losers 709 to 151, with 63 reaching its daily upside limit of 15 percent.
Institutional investors posted net purchases of 204.56 billion won in the main bourse and foreigners also bought a net worth of 63.94 billion won. In comparison, individual investors sold a net 215 billion won’s worth.
Tech bellwether Samsung Electronics inched up 0.19 percent to 515,000 won and cross-city rival LG Electronics added 1.49 percent to 94,100 won.
Builders experienced a big lift in share prices thanks to the newly announced government policy to ease regulations on apartments due for reconstruction.
Doosan Engineering & Construction rocketed 9.09 percent to 5,520 won and Daelim Industrial rose 7.76 percent to 41,650 won.