X

Korean shares advance on refiner, chemical gains

By 임정요
Published : May 27, 2016 - 16:09

South Korean shares closed higher Friday as falling crude prices drove up refiners and chemicals, supported by strong foreign buying. The local currency slightly gained ground against the U.S. dollar.

The benchmark Korea Composite Stock Price Index gained 12.11 points, or 0.62 percent, to 1,967.17. Trading volume was moderate at 517.98 million shares worth about 4.81 trillion won ($4.07 billion). Gainers far outpaced decliners 516 to 290.



Local analysts said slipping oil prices due to increased production and upbeat U.S. data on home sales and jobless claims boosted investor sentiment.

"Foreign investors turned to net buyers to support the market after they dumped shares on Fed officials' comments about an interest rate hike in the U.S. in the coming month," Bae Sung-young, an analyst at Hyundai Securities, said. "Chemicals and refiners led the gains after oil prices fell."

Foreign investors bought a net 150.95 billion won worth of local shares, while retail investors and institutions each dumped a net 176.46 billion won and 9.78 billion won.

Refiners rallied after oil prices trimmed their third weekly advance via Canadian energy producers moving to resume operations after wildfires eased.

Top refiner SK Innovation gained 4.17 percent to 162,500 won, and No. 3 S-Oil jumped 6.05 percent to 87,700 won. LG Chem, the nation's leading battery maker, edged up 0.92 percent to 275,000 won.

Tech heavyweights closed mixed.

Market bellwether Samsung Electronics shed 1.08 percent to 1,282,000 won, and chip giant SK hynix soared 6.11 percent to 28,650 won.

The local currency closed at 1,179.3 won against the U.S. greenback, up 1.1 won from the previous session's close.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year Treasury was steady at 1.468 percent, and the return on the benchmark five-year government bond shed 0.5 basis point to 1.552 percent. (Yonhap)


MOST POPULAR

More articles by this writerBack to List