+ A

Stocks hit new high, thanks to Samsung

June 27,2017
Korean stocks hit a new record high on Monday, driven by gains in Samsung Electronics and other tech stocks. The Korean won rose against the U.S. dollar.

The benchmark Kospi climbed 10.06 points, or 0.42 percent, to close at 2,388.66. Trade volume was moderate at 315 million shares worth 5.1 trillion won ($4.48 billion).

The local stock market opened higher on a rebound in oil prices. The index touched a high of 2,390.70 shortly before closing, marking its highest intra-day level in history.

Some analysts said the local stock market could test the 2,500-point level in the coming months.

Chi Ki-ho, head of the research division at Cape Investment & Securities, said the local stock market is expected to extend its winning streak to a seventh consecutive month of gains.

However, Chi said the local stock market has not shown signs of overheating as the rally is supported by expectations about healthier corporate earnings.

Top market cap Samsung Electronics rose 1.39 percent to end at a fresh record high of 2,414,000 won, and SK hynix, a global chipmaker, jumped 3.85 percent to hit an all-time high of 67,500 won.

Naver, the operator of the country’s top Internet portal, gained 0.11 percent at 888,000 won.

Samsung Biologics jumped 13.45 percent to 282,500 won. Industry analysts said the gain was from expectations that a biosimilar product developed by the company’s biopharmaceutical subsidiary Samsung Bioepis is soon to be approved for sale in the European market. A biosimilar is an identical copy of an original medical product.

Top carmaker Hyundai Motor was flat at 164,000 won, while its smaller affiliate Kia Motors fell 0.51 percent at 38,650 won. Auto parts affiliate Hyundai Mobis also dipped 0.58 percent to 255,500 won.

Cosmetics giant Amore Pacific dropped 2.98 percent to 309,000 won.

Secondary Kosdaq market fell 0.57 points or 0.09 percent to close at 668.36.

The local currency closed at 1,137.10 won against the U.S. dollar, up 1.7 won from the previous session’s close.

Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys fell 0.2 basis point to 1.686 percent and the return on the benchmark five-year government bond declined 0.4 basis point to 1.853 percent.

BY KIM JEE-HEE, YONHAP [kim.jeehee@joongang.co.kr]