South Korean shares rose for the third day on Thursday as bargain-hunting drove tech stocks higher, recovering from a dip following the central bank's decision to hold the base rate. The Korea Composite Stock Price Index (KOSPI) closed up 0.7 percent at 1,949.80 points, climbing out of a 4-1/2 month low hit in Monday's trade.
The Bank of Korea surprised markets by holding the base rate steady at 2.75 percent, and revised down growth forecasts to 2.6 percent for the year. Techs led the gains, with SK Hynix rising 3.8 percent and LG Display up 3.6 percent on upbeat earnings forecasts. Pharmaceuticals also outperformed, rising 2.9 percent. Overall, 556 shares advanced while 244 declined. Foreign investors returned to the market for a second day, buying a net 253 billion won ($222.76 million) worth of KOSPI shares, the largest amount since March 4. The KOSPI 200 benchmark of core stocks closed up0.7 percent, while the junior KOSDAQ edged 1.8 percent higher.