Published : 2013-10-18 15:37
Updated : 2013-10-18 16:31
South Korean stocks closed 0.58 percent higher Friday as investors' sentiment got a boost from abated concerns over political impasses in the United States,
analysts said. The local currency rose against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) advanced 11.79 points to finish at 2,052.40. Trading volume was light at 251.5 million shares worth 4.38 trillion won (US$4.13 billion), with gainers outpacing losers 454 to 342.
Analysts said the local stock market gathered ground as the temporary deal reached between U.S. Senate leaders to raise the debt ceiling through Feb. 7 next year eased investors' worries over the world's largest economy.
"Seoul shares gathered ground as abated concerns from the U.S. boosted investors' sentiment," said Lee Sang-jae, a researcher from Hyundai Securities Co.
China's robust on-year economic growth for the third quarter of 2013, which came to 7.8 percent, also added to investors' sentiment, analysts said. China is the biggest trading partner for Asia's fourth-largest economy.
However, analysts added the growth was limited, as the deal between U.S. Senate leaders to increase its debt ceiling is only temporary, and investors took a wait-and-see stance on the future policy moves of the Federal Reserve.
Overseas investors became net buyers on the main bourse for the 36th consecutive trading session at a net 309.1 billion won, breaking its earlier record of 35 days set on Thursday.
Individuals and institutions, in contrast, offloaded a net 126.8 billion won and 165.5 billion won, respectively, during Friday's trading session.
NAVER, the country's No. 1 Internet portal operator, climbed 4.92 percent to 640,000 won following an improved outlook over the industry after global giant Google posted a better-than-expected earning for the third quarter.
Tech shares also lead the gain, with market behemoth Samsung Electronics advancing 0.62 percent to 1,472,000 won and top chipmaker SK hynix rising 2.37 percent to 34,600 won. Flat panel maker LG Display gained 2.67 percent to 24,950 won.
Cash-strapped Tongyang, in contrast, fell by its daily permissible limit at 14.88 percent to 692 won on the first day of its return to the main bourse after the trading of its shares was suspended on Sept. 30.
Carmakers also closed bearish, with leading Hyundai Motor falling 3.02 percent to 256,500 won and its smaller affiliate Kia Motors losing 1.25 percent to 63,000 won. Top auto parts maker Hyundai Mobis shed 1.02 percent to 290,000 won.
The local currency ended at 1,060.80 won against the greenback, up 2.90 won from Thursday's close, as exporters offloaded the U.S. dollar, dealers said.
Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasuries slid 0.03 percentage point to 2.82 percent and the return on the benchmark five-year government bonds also fell 0.04 percentage point to 3.08 percent. (Yonhap News)