SEOUL: South Korean stocks closed 0.25 percent higher Friday as brokerage, steel and other blue chips gained ground on eased concerns over an early rate hike by the U.S. Federal Reserve, but the rise was restrained by foreign selling, analysts said. The local currency ended flat against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) rose 5.08 points to 2,046.96. Trading volume was moderate at 391.35 million shares worth 5.56 trillion won (US$5.02 billion), with gainers beating decliners 452 to 358.
“The market got off to a strong start buoyed by eased concerns over an early rate hike as the statement that came out after the FOMC meeting was interpreted as dovish, but the massive foreign selling limited the gains,” said Lee Kyung-min, a researcher at Daishin Securities.
After its two-day meeting that ended Wednesday, Federal Reserve Chair Janet Yellen said that a rate cut would come within this year, but she did not hint at raising the rate in September as was widely expected by market watchers.
Retail and institutional investors bought a net of around 190 billion won and 110 billion won worth of shares, while foreign investors’ net selling came to around 280 billion won.
Brokerage issues closed sharply higher, bolstered by the government’s announcement of a set of measures aimed at encouraging the launch of Internet-only banks, which investors see as more business opportunities for local securities firms.
