+ A

Investors flock to Kospi after Galaxy release

Sept 16,2017
Seoul’s main bourse closed higher on Friday as investors scooped up local electronics shares with the official launch of Samsung’s Galaxy Note8.

The benchmark Kospi index rose 8.41 points, or 0.35 percent, on Friday to close at 2,386.07. Foreigners net sold local stock, offloading 88.2 billion won ($77.9 million). Institutional and retail investors, on the other hand, scooped up 38.8 billion won and 14.3 billion won each.

The Kospi had opened lower after North Korea fired another ballistic missile early in the morning in response to fresh sanctions from the United Nations.

“The local stock market started lower, affected by North Korea’s missile launch, but soon gained ground as investors picked up some market heavyweights,” said Lee Yeong-gon, a Hana Financial Investment analyst.

Top-cap Samsung Electronics edged up 0.20 percent to close at 2,520,000 won. Friday was the official release date of the Galaxy Note8 in 40 countries around the world.

Other major tech shares remained in positive terrain. Chipmaker SK Hynix inched up 0.52 percent to 77,200 won, and LG Electronics gained 1.82 percent to close at 89,500 won. The state-owned Korea Electric Power Corporation nudged up 0.37 percent to 41,200 won.

By sector, communications shares went up 3.1 percent, while insurance and securities rose 1.7 and 1.4 percent each. Shinhan Financial Group advanced 2.41 percent to 50,900 won, and KB Financial Group increased 0.75 percent to 54,000 won.

Automakers were mixed across the board. Top auto parts supplier Hyundai Mobis climbed 1.17 percent to 216,000 won. Kia Motors, the country’s second largest automaker, also rose 0.98 percent to 30,900 won.

The top automaker on the other hand, Hyundai Motor, inched down 0.36 percent to 136,500 won.

Petrochemical shares were in negative terrain with LG Chem retreating 1.47 percent to 401,000 won and SK Innovation plummeting 3.57 percent to 189,000 won.

The secondary Kosdaq index also went up on Friday, advancing 5.89 points, or 0.89 percent, to close at 671.30, despite a fall on New York’s Nasdaq. Pharmaceutical shares got a push after the government announced a policy road map for the bio industry. Celltrion, the top drugmaker and listed company on the index, skyrocketed 6.86 percent to 127,700 won.

The local currency closed at 1,131.7 won against the U.S. dollar, up 0.9 won from Thursday’s close.

The returns on three-year and 10-year government bonds remained fixed at 1.74 percent and 2.25 percent.

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