SEOUL: South Korean stocks ended 0.5 percent higher Tuesday as major exporters rose on favorable exchange rates, analysts said. The Korean won hit a fresh two-year low against the greenback amid high expectations of U.S. rate hikes late this year.
The benchmark Korea Composite Stock Price Index (KOSPI) gained 10.31 points to 2,083.62. Trading volume was high at 702.6 million shares worth 6.41 trillion won (US$5.53 billion), with gainers beating decliners 467 to 343.
Analysts said exporters bounced back from negative terrain as a weaker local currency boded well for their overseas shipments down the road.
“Autos and shipbuilders rebounded with investor sentiment getting a boost from better exchange rate conditions for these exporting firms,” said Kim Hyung-ryeol, an analyst from Kyobo Securities Co.
Still, market watchers cautioned it is too early to see the KOSPI gain as a sign of the market turning around as foreigners remained in selling mode.
“There’s still not enough momentum to push up investors’ appetite, considering the overall economic conditions,” Kim said.
Foreigners sold a net 128.45 billion won, while retail investors and institutions scooped up 94.63 billion won and 39.94 billion won worth of shares, respectively.
Auto shares led the gain, with No. 1 Hyundai Motor shooting up 7.26 percent to 133,000 won and its sister affiliate Kia Motors jumping 3.06 percent to 42,100 won. Car parts maker Hyundai Mobis also moved up 2.1 percent to finish at 194,500 won.
