South Korean stocks surged 1.64 percent Tuesday following Wall Street and European market gains and bargain hunting for big caps, analysts said. The local currency rose against the U.S. dollar.
The benchmark Korea Composite Stock Price Index jumped 29.56 points to 1,828.69, in the second straight session of gains following last week’s sharp drop caused by eurozone jitters.
Trading volume was moderate at 416 million shares worth 4.79 trillion won ($4.11 billion), with gainers outpacing losers 664 to 194.
“The panic that gripped the bourse seems to have passed, with rebounds in the U.S. and European stock markets helping to restore confidence,” said Cho Byung-hyun, an analyst at Tongyang Securities Inc.
He said, however, while stocks have recovered to some extent, this may not translate into an upward trend until the problems facing Greece and other European economies are resolved.
The overnight global market gains were helped by Beijing’s pledge to stimulate economic growth. Bargain hunting for big cap shares that fell in recent trading sessions also bolstered the market.
Many beaten-down, big-cap shares rebounded, with electronics and information technology firms leading the gains.
Market bellwether Samsung Electronics jumped 2.56 percent to 1,240,000 won, with SK hynix gaining 0.64 percent to 23,550 won.
LG Electronics, a leading electronic appliance manufacturer, surged 7.63 percent to 67,700 won, with LG Chem, a globally established manufacturer of rechargeable batteries, posting 0.89 percent gains to 283,000 won.
Top refiner SK Innovation rose 1.42 percent to 142,500 won, while Hyundai Heavy Industries, the world’s largest shipmaker, gained 2.94 percent to 262,500 won.
Shares of top automaker, Hyundai Motor, and Kia Motors, South Korea’s No. 2 carmaker, remained unchanged at 237,000 won and 76,100 won each.
Shares of leading steelmaker, POSCO, however, sank 0.70 percent to 355,000 won.
The local currency finished at 1,163.2 won to the U.S. greenback, up 5.7 won from Monday’s close, dealers said.
