Seoul shares surge

22 Sep, 2012

South Korean shares closed higher on Friday, as foreign investors were net buyers for an 11th straight session following recent rallies spurred by central bank stimulus steps. The Korea Composite Stock Price Index (KOSPI) rose 0.6 percent to close at 2,002.37 points, rebounding from a 0.9 percent fall the previous session.
The main index has been largely flat after the recent rally, with the market impact of policies or data muffled by the gravity of the recent stimulus steps by central banks, said Park Sung-hyun, an analyst at Hanwha Investment & Securities. "Although the index could begin edging down, this flat trend is expected to continue throughout next week," he said. Foreigners continued to prop up the market by snapping up a net 168 billion won ($150 million) worth of KOSPI shares at the market close.
Market heavyweight Samsung Electronics led the index by rising 1.2 percent. Pharmaceuticals and food and beverage manufacturers were notably bullish, with dairy product manufacturer Binggrae up 5.3 percent while drug maker Yuhan Corp rose 4.1 percent.
Flat-screen maker LG Display fell nearly 5 percent mid-session before closing down 2.7 percent after a media report said that its Japanese rival Sharp Corp was in talks to make US chipmaker Intel Corp Sharp's biggest shareholder. Sharp denied that it was in such negotiations. Among small-cap stocks, shares in Ahnlab Inc plunged by the daily trading limit of 15 percent after its top shareholder, South Korean presidential candidate Ahn Cheol-soo, said he would donate all of his remaining stake worth $299 million in the antivirus software firm should he win the presidency. Gainers outnumbered decliners 463 to 356 on the main board. The KOSPI 200 benchmark of core stocks closed up 0.6 percent, while the junior KOSDAQ edged 0.7 percent higher.

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