Seoul shares rose on Thursday to their highest close in four weeks, as blue chips such as Samsung Electronics gained after the central bank held interest rates steady and sounded upbeat about the economy's momentum.
Brokerages such as Samsung Securities Co surged after the finance ministry said a day earlier it planned to ease regulations in the financial sector, making it easier for firms to diversify the products and services they offer.
But Hana Bank fell 4.02 percent to 40,550 won, a day after it said it may form a consortium to bid for rival Korea Exchange Bank, as investors worried the purchase would be too expensive and that it would dilute shares.
"There's no gloomy outlook in the economy," said Kim Hyun-tae, a fund manager at Landmark Investment Management.
The main market wobbled in early trade amid volatility tied to the expiration of options at the end of the session.
The benchmark Korea Composite Stock Price Index (KOSPI) closed up 0.56 percent at 1,234.43, its highest finish since October 11 when it hit a record close of 1,244.27.
South Korea's central bank held interest rates steady at 3.50 percent on Thursday, saying it will maintain a loose monetary policy for now, although it hinted at rate rises to come as economic growth picks up.
Samsung Electronics Co Ltd, the world's top maker of memory chips, rose 0.67 percent to 605,000, tracking firmer US peers.
POSCO Co Ltd, the world's fifth-biggest steel maker, rose 1.38 percent to 221,000 won, while auto maker Hyundai Motor Co added 1.35 percent to 82,500 won.
SK Telecom Co, the country's top wireless operator, rose 2.18 percent to 187,500 won.
Samsung Securities, the countries' most valuable brokerage, roes 4.32 percent to 45,900 won, while smaller rival Daewoo Securities Co surged 8.71 percent to 13,100 won.
Shipbuilders gained after Merrill Lynch upgraded on Thursday its ratings and profit estimates on the sector, saying a weaker South Korean won would boost earnings.
South Korea's junior Kosdaq market rose for a ninth consecutive session, gaining 1.27 percent to 636.73, its highest close since ending at 644.7 on July 18, 2002.
Trade volume reached 453 million shares worth 3.8 trillion won compared to 397.7 million shares worth 3.9 trillion won on Wednesday. Gainers outnumbered decliners by 445 to 294 with 82 titles ending flat.
Foreign investors sold a net of 91.2 billion won in shares on the main bourse, while retail investors sold a net of 53.4 billion won. But, institutional investors bought a net of 23.7 billion won.
The December KOSPI 200 futures index rose 1.35 points to 159.55, while the underlying KOSPI 200 spot index added 0.82 point to 158.69.
Comments
Comments are closed.