Published : 2013-09-16 15:34
Updated : 2013-09-16 15:34
South Korean stocks closed 0.96 percent higher as investor sentiment was boosted on abated concerns over the U.S Federal Reserve's tapering of its quantitative easing, analysts said. The local currency gained against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) added 19.05 points to finish at 2,013.37. Trading volume was low at 244.1 million shares worth 4.05 trillion won ($3.73 billion), with losers outstripping gainers 444 to 369.
Analysts said Seoul shares closed higher as former U.S. Treasury Secretary Lawrence Summers, one of the major candidates to replace Fed Chairman Ben Bernanke, withdrew his name from the consideration.
Summers reportedly opposes quantitative-easing measures, which raised concerns among global investors that the Fed may seek a sharp tapering of its economic stimulus moves if he is nominated to head the U.S. central bank.
"Investors considered Summers as a major drag on the market due to his hawkish stance," said Lee Jae-man, a researcher at Tongyang Securities Co.
The growth, however, was limited as investors also took a wait-and-see approach ahead of the three-day holiday slated for later this week.
The Seoul bourse will be closed for three days starting from Sept. 18, for the Chuseok holiday, the national harvest celebration.
Foreigners snapped up a net 494.3 billion won worth of local equities, becoming net buyers for the 17th consecutive trading session. In contrast, individuals and institutions offloaded a net 280 billion won and 195.6 billion won, respectively.
Tech shares closed higher, with top player Samsung Electronics rising 1.35 percent to 1,425,000 won and leading chipmaker SK hynix adding 2.76 percent to 29,800 won. LG Electronics gained 0.96 percent to 73,900 won.
Carmakers also closed bullish, with No. 1 Hyundai Motor adding 2.82 percent to 255,500 won and its smaller affiliate Kia Motors rising 2.84 percent to 68,900 won. Auto parts maker Hyundai Mobis gained 1.94 percent to 289,000 won.
Builders also traded higher, with Hyundai Engineering & Construction moving up 1.76 percent to 63,600 won and Daewoo Engineering & Construction advancing 1.65 percent to 8,600 won.
Daelim Industrial gained 2.15 percent to 100,000 won.
In contrast, mobile carriers traded lower, with SK Telecom falling 0.9 percent to 219,000 won and KT losing 0.95 percent to 36,650 won. LG Uplus, the smallest player, shed 3.95 percent to 12,150 won.
The local currency ended at 1,082.20 won against the greenback, up 4.80 won from Friday's close, due mainly to abated concerns over the scope of the Fed's tapering of quantitative easing, dealers said. (Yonhap news)