In ‘Choinomics,’ market likes what it sees
One day after Finance Minister Choi Kyung-hwan announced his “Choinomics” stimulus plan, Korean stocks rebounded yesterday, marking a new high for 2014 as the Kospi surpassed the 2,030 mark for the first time this year.The benchmark index finished at 2,033.86 points, up 7.24 points, or 0.36 percent, from the previous trading day. It was the highest close since November.
Retail investors sold more than 148.9 billion won ($145 million) worth of local shares, while foreign investors purchased 63.8 billion won and institutional investors 76.8 billion won.
Samsung Electronics was unchanged at 1.36 million won, and LG Electronics dropped 1.3 percent to 76,000 won.
Samsung SDI, the group’s battery maker, dropped 2.71 percent to 161,500, while LG Display added 0.75 percent to 33,400 won. SK Hynix, the nation’s leading semiconductor manufacturer, slipped 0.11 to 47,500 won.
Automobile shares were mixed. Hyundai Motor lost 0.66 percent to 227,500 won, while Kia Motors gained 1.61 percent to 56,800 won.
The nation’s steel giant, Posco, added 1.72 percent to 326,000 won. Hyundai Steel also gained 2.32 percent to 75,000 won.
Hyundai Heavy Industries fell 0.58 percent to 170,000 won, and Samsung Heavy Industries dropped 1.89 percent to 28,500 won.
Naver gained 0.4 percent to 757,000 won, while its smaller rival, Daum, fell 0.53 percent to 131,700 won.
LG Chem, Korea’s largest chemical company, closed at 384,500 won, down 0.52 percent, whereas Lotte Chemical added 1.17 percent to 173,000 won.
The won appreciated 2.70 to 1,025.90 per dollar. “Exporters were selling dollars as the end of the month nears, and the trend is likely to extend into next week as companies seek to convert overseas earnings before summer holidays start in August,” said Ryoo Hyun-jung, a Seoul-based chief currency dealer at Citibank Korea.
The yield on sovereign bonds due June 2017 was little changed yesterday and fell two basis points for the week to 2.50 percent. The yield on debt maturing March 2024 was steady and rose three basis points from July 18 to 3.01 percent.
BY KIM EUN-JI, BLOOMBERG [eunjik@joongang.co.kr]
with the Korea JoongAng Daily
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