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New record for Kospi after inauguration

May 12,2017
Seoul’s main bourse hit a new record Thursday, boosted by expectations that a new administration will relieve uncertainties in the market.

The benchmark Kospi rose 26.25 points, or 1.16 percent, on Thursday to close at 2,296.37, resetting an index record set just two trading days earlier.

Kim Sung-hwan, a researcher at Bookook Securities, said the Kospi could climb to 2,350 points in the short term on expectations of expansionary policies by the new government of President Moon Jae-in and healthier corporate earnings.

Outbound shipments during the first 10 days of May also looked promising. They rose 4.5 percent year on year to $9.7 billion.

Kim cautioned that the local stock market could see profit-taking, leading to an index slump.

Institutions and foreign investors were main buyers of local shares, scooping up Korean stocks worth 104.9 billion won ($92.9 million) and 332.8 billion won respectively.

By sector, banking and securities went up 3 percent and 2.7 percent each, while energy and chemicals climbed 2.4 percent.

Despite the overall increase, market bellwether Samsung Electronics fell 0.22 percent to close at 2,275,000 won, extending its fall to a second straight trading day.

Most large-cap shares, however, remained in positive terrain.

Chipmaker SK Hynix gained 1.44 percent to close at 56,400 won and portal giant Naver jumped 5.10 percent to 866,000 won. Leading steel giant Posco inched up 0.19 percent to 270,500 won. Top auto maker Hyundai Motor rose 0.64 percent to 157,500 won and sister company Kia Motors gained 2.08 percent to 36,850 won. Affiliate auto part maker Hyundai Mobis also closed higher at 250,000 won, up 1.83 percent compared to the previous closing.

The secondary Kosdaq also reached its highest level this year Thursday to close at 647.58, up 4.90 points, or 0.76 percent.

The local currency closed at 1,127.90 won against the U.S. dollar, up 7.9 won from the previous session’s close.

Yield on three-year government bonds shed one basis point to 1.73 percent while returns on a 10-year bond rose one basis point to 2.31 percent.

BY CHOI HYUNG-JO, YONHAP [choi.hyungjo@joongang.co.kr]