Seoul shares hit their third consecutive record on Wednesday as pharmaceuticals firms such as Hanmi rallied on expectations the sector had dropped too much this year relative to their earnings potential. A sub-index of drug makers surged to a record, ending up 4.63 percent, its biggest one-day percentage gain since August 30, 2006.
Financial firms such as Shinhan Financial Group also gained on expectations for stable earnings, while chemicals firms such as LG Chem Ltd continued a rally on an improving outlook. The benchmark Korea Composite Stock Price Index (KOSPI) rose 0.23 percent to a record close of 1,646.59 points. The index had earlier hit an all-time high of 1,651.61.
The sector's sub-index had fallen 0.92 percent as of Tuesday on worries about drug prices and the impact from a free trade agreement with the United States. Hanmi Pharm Co Ltd rose 5.79 percent to 137,000 won, while Daewoong Pharmaceutical Co Ltd surged 9.02 percent to 58,000 won. Banks rose on expectations for stable earnings, with easing worries over falling net interest margins, a key profitability gauge in the sector.
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