[THE INVESTOR] South Korean shares extended a winning streak into a fourth day on July 14, paring early losses, as foreigners stuck to a buying mode.

The South Korean won rose sharply against the US dollar after the nation‘s central bank froze the key interest rate at the record low of 1.25 percent.

The benchmark Korea Composite Stock Price Index added 3.22 points, or 0.16 percent, to 2,008.77.


Trade volume recorded 334.3 million shares worth 4.2 trillion won (US$3.70 billion), with decliners outnumbering advancers 443 to 348.

The KOSPI started lower but rebounded in the afternoon session as foreigners continued their net purchasing for six consecutive days.

Foreigners net-purchased 369 billion won worth of shares, while individuals and institutional investors sold a net 141 billion and 225 billion won worth of stocks, respectively.

The index’s advance was limited, however, due to a cautious outlook following China‘s release of weak June trade data and a drop in global oil prices, market watchers said.

The Bank of Korea also revised down its growth outlook for Asia’s fourth-largest economy to 2.7 percent from 2.8 percent, citing sluggish consumption at home and abroad.

“We will have to monitor (the market situation) until next week to predict whether the KOSPI will stay above the 2,000-point mark with stability,” said Kim Jeong-hwan, an analyst at Mirae Asset Daewoo. “For now, however, it seems like conditions have been created for additional hikes.”

Among the positive signs is the government‘s move to allocate supplementary budgets and looming earning surprises by major industry players.

Geopolitical risks from the finalized plan to let the US deploy the THAAD advanced missile defense system here are feared to weigh down on the local equity market.

Top cap Samsung Electronics jumped 1.28 percent to 1,500,000 won, while leading automaker Hyundai Motor lost 2.95 percent to 131,500 won.

Major chipmaker SK hynix spiked 1.23 percent to 33,050 won.

Naver, the dominant internet portal, also shed 3.17 percent to 24,000 won ahead of its listing of the shares of its Japanese arm LINE in Tokyo and New York.

The local currency closed at 1,137.35 won against the US dollar, up 9.05 won from the previous session’s close.

(theinvestor@heraldcorp.com)