Seoul shares ended slightly higher at a three-year closing high on Wednesday, led by shipyards and crude refiners and supported by improving US economic growth forecasts. The Korea Composite Stock Price Index (KOSPI) closed up 0.42 percent at 2,017.48 points in moderate turnover.
Although short-term momentum indicators reflected extremes, the main index was still trading cheaper in terms of price-earnings multiples compared with the last time it reached 2,000 points in 2007. The KOSPI is trading at about 9.4 times its 12-month forward earnings multiples, compared with 11.4 times in 2007, suggesting further gains are possible in the near term.
Foreign investors were buyers of a net 342.9 billion won ($301 million) worth of stocks, picking up shares for a third consecutive session. On Tuesday, they bought a net 547.9 billion won. Shipbuilders extended their rally, with Hyundai Heavy Industries Co Ltd, the world's No 1 shipbuilder, up 1.8 percent and Daewoo Shipbuilding & Marine Engineering Co Ltd 3.5 percent higher.
SK Energy Co Ltd, the country's top crude refiner, rose 3.3 percent. Banks added fuel to the market's upside momentum, with Shinhan Financial Group Co Ltd up 1.8 percent. Memory chipmakers including Samsung Electronics Co Ltd fell 1.4 percent, pressured further by more than a one percent loss in US Philadelphia semiconductor index.
Hynix Semiconductor Inc, the world's No 2 memory chip maker, fell 2 percent. LG Display Co Ltd shed 2.6 percent. Trading volume was 480.5 million shares worth 6.5 trillion won, compared with average daily trading volume and turnover of 346.6 million shares worth 6.7 trillion won in November. The KOSPI 200 March futures index rose 0.70 points to 264.40. The KOSPI 200 spot index advanced 0.82 points to 265.95. The junior Kosdaq market lost 0.06 percent to 514.69.
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