Seoul stocks hit yearly highs on Aug. 10

[THE INVESTOR] South Korean stocks rose on Aug. 10, hitting fresh yearly highs on the back of foreign buying.

The benchmark KOSPI rose 0.86 points, or 0.04 percent, to close at 2,044.64. Trade volume was moderate at 327 million shares worth 4.53 trillion won (US$4.10 billion), with gainers outnumbering losers 416 to 374.

After rising to a nine-month high a day earlier, the KOSPI stock index started 0.04 percent lower and it swung between gains and losses.

Market expectations for an interest rate hike by the US Federal Reserve were slightly lower following softer US productivity data. Such sentiment weakened demand for the US dollar, prompting the Korean won to gain.

Foreign investors scooped up a net 276 billion won worth of local stocks.

Seo Sang-young, a researcher at Kiwoom Securities, said the local stock market may undergo a correction for the time being.

“Recently, the local stock market is led by foreigners. But the trend of their net buying could weaken due to oil price fall and their profit-taking,” Seo said.

Samsung Electronics fell 1.66 percent to end at 1,541,000 won, while AmorePacific, the No. 1 cosmetics maker, jumped 4.64 percent to 394,500 won.

Naver, the operator of the country’s top internet portal, rose 2.65 percent at 775,000 won.

Automakers traded in negative terrain, with industry leader Hyundai Motor down 1.83 percent to 134,000 won, and its smaller affiliate Kia Motors dipping 1.2 percent at 41,150 won.

The local currency closed at 1,095.40 won against the US dollar, up 10.7 won from the previous session’s close.

It was the first time in about 14 months that the local currency closed below the 1,100-won level against the US dollar.



(theinvestor@heraldcorp.com)