South Korean shares rose for a third-straight session on Wednesday on optimism that policymakers will soon take action to bolster the global economy, with traders looking to a raft of Chinese data for further impetus. The Korea Composite Stock Price Index (KOSPI) closed up 0.9 percent at 1,903.23 points, easing back from a three-month intraday high earlier in the session, but still finished above the psychological 1,900 level.
"The main board's re-entry into the 1,900 point territory is a significant vote of confidence by the market, but caution ahead of Chinese data and overhanging uncertainty over Europe tempered further gains," said Lee Young-gon, an analyst at Hana Daetoo Securities. The index hit a wall of resistance after climbing to a session high of 1,919.61 points, just shy of its 120-day moving average of 1,921.83 points.
"Topping the 120-day moving average would signal a long-term bullish trend in the market, but investors are reluctant to venture beyond this level for now on the lack of fundamental signals to support policy optimism," said Kim Byung-yeon, an analyst at Woori Investment & Securities. A batch of data from China starting on Thursday - including inflation, industrial output, and retail sales - is expected to show the world's second-largest economy is stabilizing after a sluggish first half of the year.
Financials outperformed with all four major South Korean banks closing higher, as Woori Finance Holdings climbed 3.8 percent and Hana Financial Group gained 1.9 percent. Bargain seekers targeted Halla Climate Control shares which rose 2.2 percent. The stock plunged 13.2 percent in the previous session after auto-parts maker Mando secured the rights to buy an 8 percent stake in Halla, a potential setback for Visteon Corp which had also expressed interest in bidding.
Shares in E-Mart advanced 2.8 percent after local media said several district courts had accepted an injunction request filed by a group of local discount retailers, which calls for a repeal of guidelines requiring mandatory closure of large discount stores on Sundays. NCSoft underperformed, tumbling 4.7 percent after the game-maker reverted to losses in the second quarter while its revenues fell 11 percent compared to a year before. Hyundai Motor edged 0.2 percent lower after a positive start, facing pressure after its labor union said it would resume a partial strike after wage talks with management floundered.
Comments
Comments are closed.