SEOUL: South Korean stocks closed 0.2 percent higher Wednesday as abated concerns such as the Greece debt issue, together with rising expectations about an extra budget, continued to boost investors’ sentiment here, analysts said. The South Korean won lost ground against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) added 4.33 points to 2,085.33. Trading volume was moderate at 393.6 million shares worth 5.26 trillion won (US$4.76 billion), with gainers outpacing losers 530 to 290.
Analysts said investors’ sentiment was aided by eased uncertainties in the global financial market and reduced woes over the outbreak of Middle East Respiratory Syndrome (MERS).
“It is likely that the KOSPI has already reached its nadir, amid reports over the possible resolution of the Greece problem and the government’s announcement of stimulus plans,” said Kim Jung-hwan, an analyst at KDB Daewoo Securities Co. “However, an excessive optimism should be avoided, as there are no clear indications regarding an economic recovery.”
The government said earlier it is considering a package of measures to prop up weak economic growth, including a supplementary budget, adding that the MERS outbreak has exerted a considerable negative impact on the economy.
