Seoul shares close at one-month high

18 Mar, 2009

Seoul shares rose 3.4 percent on Tuesday, posting their highest close in a month, as a continued rebound in the won boosted financials while builders rallied on hopes of a real estate tax regulation change. The Korea Composite Stock Price Index finished up 3.41 percent at 1,163.88 points.
"We are seeing a sort of relief rally centred on the financial sector today, as earlier fears about US and European banking sectors have eased and therefore the sectoral market risks have abated as well," said Suh Dong-pil, a market analyst at Hana Daetoo Securities. "Substantial programme buying also indicates that investors in futures hold a positive outlook on South Korean stocks for the time being, as there was buying in large-cap blue chips."
Strength in the won, which rose 2.2 percent on Tuesday, and hopes for a liquidity rally also lifted sentiment, according to Hwan Keum-dan, a market analyst at Samsung Securities. Construction issues advanced after South Korean government on Monday issued an outline for easier real estate tax regulations, stoking hopes for some recovery in the housing market and sending shares in associated firms higher, analysts said.
"Companies like GS Construction and Daelim Industrial are more heavily concentrated on the residential property market, which is why they are rising more than their peers," said Han Sang-hee, an analyst at Korea Investment & Securities. Daelim jumped 11.3 percent and GS Construction 9.32 percent.
Financials led gains, helped by the won and a returning appetite for risk. Hana Financial Group finished 11.58 percent higher and Woori Finance Holdings advanced 7.26 percent. Brokerages, including Samsung Securities and Woori Investment & Securities, rallied 7.71 percent and 14.95 percent respectively. Foreign investors bought a net 28.3 billion won.
Advancers led decliners by 667 to 167, with 58 titles ending unchanged. A total of 718.6 million shares worth 5.72 trillion won changed hands, compared with 429 million shares worth 4.27 trillion won traded on Monday. The KOSPI 200 June futures index rose 5.70 points to 153.30 points and the KOSPI 200 spot index went up 5.17 points to 152.17. The junior Kosdaq market advanced 1.78 percent to end at 394.66 points.

Read Comments