[THE INVESTOR] South Korean shares ended slightly higher on June 21 as investors do not expect any powerful downside factors from Britain’s EU membership vote and the Federal Reserve chief’s speech on the economy this week. The local currency increased against the US dollar.
The benchmark Korea Composite Stock Price Index hiked 1.58 points, or 0.08 percent, to 1982.70. Trade volume remained moderate at 548.57 million shares worth 4.43 trillion won (US$3.83 billion).
Investors are currently eyeing the outcomes from two major events -- Brexit vote on June 23 and Fed Chair Janet Yellen’s speech on monetary policy before lawmakers on June 22 and 23 (US time), according to industry analysts.
“Yellen may express worries over the economy but the US economy is relatively good compared to others. And Britons are expected to vote to remain in the EU this week. The KOSPI ended higher on such expectations,” Mirae Asset Daewoo analyst Kim Hyung-rea said.
If Britain cements its decision to maintain its EU membership and Yellen proceeds to make mild comments on the economy, the KOSPI may test the 2,000-level next month, he said.
Retail investors bought a net 90.86 billion won. Foreigners and institutions sold a combined 142 billion won worth of domestic stocks.
Supporting the broader market, top market cap Samsung Electronics soared 1.2 percent to 1,448,000 won, and automaker giant Hyundai Motor climbed 1.1 percent to 138,000 won. Top cosmetics manufacturer AmorePacific was up 1.6 percent to 419,000 won.
Among those who faced loss, state-run utility Korea Electric Power Corp. declined 2.2 percent to 58,600 won and top refiner SK Innovation fell 3.2 percent at 138,500 won.
The local currency closed at 1,156.60 won against the US dollar, a 4.20 won rise from the previous session’s close.
(
theinvestor@heraldcorp.com)