Seoul shares extended their rally on Friday ahead of an extended holiday to close at a near six-month high as subsiding eurozone worries prompted foreign investors to up the ante in their buying binge. "Fundamental risk perceptions have been reduced by the latest string of positive news from Europe, improving overall share valuation and attracting strong foreign purchases," said Kim Sung-bong, an analyst at Samsung Securities.
The Korea Composite Stock Price Index (KOSPI) soared 1.82 percent to close at 1,949.89 points, posting its highest close since August 4 and third straight winning week. A buying spree by offshore investors shifted into extra gear, raking in a net 1,416.7 billion won ($1.25 billion) worth of shares, the largest single-day purchase since July 8 and ninth straight day of buying.
The rally was spearheaded by brokerage firms, with Mirae Asset Securities soaring 7.61 percent while Woori Investment & Securities rose 6.35 percent. Shipbuilders lent support, with Hyundai Heavy Industries gaining 4.45 percent. STX Offshore & Shipbuilding leaped 11.72 percent on reports of the impending sale of a stake in Singapore-listed STX OSV Holdings by its parent STX Group, easing concerns of a liquidity squeeze within the conglomerate.
Shares in other STX Group affiliates also rose, with STX Corporation up 6.12 percent and STX Pan Ocean gaining 5.78 percent. Korea Aerospace Industries reversed early losses to close up 2.73 percent after the company was selected as the preferred bidder to produce wing components for Airbus A-320 passenger aircraft. The KOSPI 200 index rose 2.13 percent while the junior KOSDAQ index fell 0.68 percent. South Korean financial markets will be closed on Monday and Tuesday in observance of the Lunar New Year holidays, and will re-open on Wednesday.
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