Seoul shares snapped a three-session losing streak, rising 0.6 percent on Tuesday, as foreign investors extended buying and as key blue chip technology plays including Samsung Electronics Co Ltd gained. The Korea Composite Stock Price Index (KOSPI) ended up 0.55 percent at 2,033.32 points. The KOSPI 200 March futures index rose 1.95 points to 268.95. The KOSPI 200 spot index was 1.69 points up at 269.04.
The junior Kosdaq market lost 0.35 percent to 494.95. "There are hopes about the market's continued upside momentum next year, which we think will probably continue well into the first quarter," said Choi Seong-lak, an analyst at SK Securities, adding that the KOSPI will likely hit 2,200 points within the first quarter.
"Despite the recent gains, South Korea's market still offers attractive valuations." The benchmark KOSPI currently trades at a price-earnings multiple of around 10, lower than its regional market peers such as China's 19 and Taiwan at around 17. Foreign investors were buyers of a net 240.2 billion won ($209 million) worth of stocks. Large-cap technology issues fuelled upside momentum, with Samsung Electronics, the world's No 1 memory chip maker and the largest issue on the KOSPI, rising 1.7 percent.
LG Display, the world's No 2 flat panel maker, gained 2.4 percent. Construction issues outperformed after the Ministry of Land unveiled an initiative to provide more middle-class housing. Daewoo Engineering & Construction Co Ltd rose 5 percent, boosted further by its signing of a 1.2 trillion won ($1.04 billion) deal to build a thermal power plant in Morocco. Brokerages climbed as the market's rally this year pointed to higher commissions and earnings. Mirae Asset Securities rose 1.4 percent and Hyundai Securities advanced 1.45 percent.
Comments
Comments are closed.