Posted on : Jul.25,2006 17:14 KST Modified on : Jul.26,2006 15:00 KST

South Korean stocks ended higher Tuesday as massive program buying pushed the market sharply higher amid a lack of buying interest. The South Korean won fell against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) rose 16.42 points, or 1.30 percent, to 1,279.77. Volume was light at 192 million shares worth 2.52 trillion won (US$2.65 billion), with gainers outpacing losers 459 to 272. The blue-chip KRX 100 index added 38.04 points, or 1.45 percent, to 2,666.60, and the tech-laced KOSDAQ index gained 3.66 points, or 0.67 percent, to 552.34.

The local currency finished at 952.10 won, down 0.40 won from Monday's close, as the Japanese yen fell against the dollar. The won tends to move in tandem with the yen. "The market started higher on the back of overnight gains in U.S. stocks, but there were no buying interests in the market.

Only program buying played a role in pulling up the market," said Kim Hak-gyun, an analyst at Korea Investment & Securities Co.


U.S. stocks staged a brisk rally Monday, with the Dow Jones industrial average rising 1.68 percent and the NASDAQ composite Index advancing 2.05 percent. Tech bellwethers took their cue from the overnight surge on NASDAQ. Tech giant Samsung Electronics gained 1.70 percent to 598,000 won and chip titan Hynix Semiconductor rose 1.11 percent to 32,000 won. The world's largest liquid crystal display manufacturer LG.Philips LCD added 2.79 percent to 33,200 won.

Hyundai Heavy Industries, the world's largest shipbuilder, was up 2.65 percent at 116,000 won on an outlook of improved earnings.

Leading builder Hyundai Engineering & Construction rose 3.34 percent to 46,350 won after it reported in a regulatory filing earlier in the day that its second-quarter net profit rose 50.8 percent from a year ago.

Financial shares such as brokerage and bank issues remained stronger as investors bet they would benefit from the government's envisioned plan to further deregulate the financial sector. No. 1 lender Kookmin Bank closed up 1.92 percent at 79,500 won and Samsung Securities rose 1.52 percent to 49,950 won. On the currency market, the won lost against the greenback in line with the Japanese yen's descent versus the dollar, dealers said. However, dollar selling by exporters cut the local currency's downswing in afternoon trading, they added.

Bond prices, which move inversely to yields, fell sharply. The return on the benchmark three-year Treasuries rose 0.03 percentage point to 4.90 percent, with the yield on the five-year government bonds adding 0.03 percentage point to 5.00 percent.

Seoul, July 25 (Yonhap News)



  • 오피니언

multimedia

most viewed articles

hot issue