Seoul shares jump 1.4% on recovery hopes

Seoul shares jump 1.4% on recovery hopes

Korean stocks soared 1.4 percent Tuesday as foreigners and institutions loaded up on shares on rising hopes for a global economic recovery. The local currency closed lower against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) added 26.10 points to close at 1,888.30. Trading volume was moderate at 380.9 million shares worth 4.21 trillion won ($3.46 billion), with winners far outnumbering losers 672 to 162.

Analysts said Seoul shares gained sharp ground amid growing hopes for the recovery of the global economy, which also lent support to other stock markets in Japan and China.

“The KOSPI gained ground as the Chinese stock market traded bullish,” said Kim Hyung-rea, an analyst at KDB Daewoo Securities Co.

Investor sentiment also got a boost from European Central Bank chief Mario Draghi’s remark earlier this week that hinted at the announcement of fresh stimulus in March, analysts said.

Foreign investors purchased a net 91 billion won, while individuals sold a net 233.4 billion won. Institutions bought more shares than they sold at 76.5 billion won.

Tech shares closed bullish, with Samsung Electronics advancing 1.21 percent to 1,168,000 won and SK hynix increasing 4.33 percent to 28,900 won. LG Electronics moved up 3.12 percent to 59,500 won.

Chemical shares also traded higher, with AmorePacific rising 0.69 percent to 365,500 won and LG Chem adding 4.45 percent to 293,500 won.

Carmakers also closed higher, with Hyundai Motor moving up 1.08 percent to 141,000 won and auto parts maker Hyundai Mobis increasing 1.10 percent to 250,500 won. Kia Motors gained 1.5 percent to 47,250 won.

No. 1 mobile carrier SK Telecom remained unchanged at 216,500 won, while KT moved up 0.89 percent to 28,400 won. LG Uplus increased 0.43 percent to 9,370 won.

The local currency ended at 1,216.60 won against the U.S. dollar, down 8.5 won from Monday’s close.

Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys shed 5.3 basis points to 1.431 percent and the return on the benchmark five-year government bonds lost 5.2 points to 1.552 percent. (Yonhap)

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