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After fall, Kospi goes back to record breaking

Nov 04,2017
Seoul’s main bourse rebounded after a brief fall to reach a new record on Friday, boosted by the resolved uncertainties after the nomination of the new head of the U.S Federal Reserve.

The benchmark Kospi closed at 2,557.97 Friday, up 11.61 points, or 0.46 percent, compared to the previous session, ending the record-setting week with another new high.

Analysts said Seoul shares closed higher on speculation that the U.S. Fed will refrain from making drastic changes in its financial policies for the time being.

“The nomination of Jerome Powell as the new head of the U.S. Federal Reserve gives a positive impact on the South Korean market as it abates uncertainties,” said Seo Sang-young, a researcher at Kiwoom Securities Co. “It is also likely that Apple-related shares will lead growth.”

Institutional investors were the main buyers of Seoul’s stocks, scooping up 272.7 billion won ($244.6 million) in local shares. Foreigners net sold 147.6 billion won while retail investors offloaded 167.9 billion won.

Market heavyweight Samsung Electronics fell despite the overall rise, down 1.19 percent compared to the previous trading day to close at 2,819,000 won.

LG Chem, the nation’s top battery producer, also tumbled 1.43 percent to 414,000 won. Competing battery maker Samsung SDI slipped 2.22 percent. Netmarble Games, Korea’s leading mobile game publisher, stepped down 1.41 percent to 175,000 won.

Other large-caps were in positive terrain.

Chipmaker SK Hynix went up 1.20 percent to 84,400 won.

Hyundai Motor, Korea’s leading automotive company, inched up 0.94 percent to 161,500 won. Sister company Kia Motors nudged up 0.28 percent to 35,250 won and affiliate auto parts producer Hyundai Mobis rose 1.88 percent to 271,000 won.

Leading financial companies also managed to do well.

KB Financial Group, Korea’s top financial holding company by assets, gained 1.35 percent to 59,900 won. Shinhan Financial Group advanced 1.39 percent to 51,000 won.

SK Innovation, Korea’s top oil refiner, climbed up 2.20 percent to 209,000 won.

The secondary Kosdaq closed at 701.13, up 6.17 points, or 0.89 percent, from the previous closing.

The local currency closed at 1,113.80 won against the U.S. dollar, up 0.60 won from the previous session’s close.

The return on three-year government bond moved up one basis point to 2.13 percent while that of 10-year bond remained fixed at 2.53 percent.

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