SEOUL: South Korean stocks started this week in positive territory on Monday as rate cuts in China along with the launch of quantitative easing in Europe boosted expectations for foreign capital inflow into the local stock market.
The benchmark Korea Composite Stock Price Index (KOSPI) rose 11. 01 points, or 0.55 percent, to 1,996.81 at the close. Trading volume stood at 365.96 million shares worth 5.5 trillion won (5 billion U.S. dollars).
People’s Bank of China (PBOC) decided Saturday to lower one- year deposit and lending rates by 25 basis points to 2.5 percent and 5.35 percent each.
European Central Bank (ECB) is set to launch its asset- purchasing program from this week, boosting expectations that foreign capital would flow into the local stock market.
Worries about the earlier-than-expected rate increase in the United States and Greece’s exit from the euro zone eased, bolstering appetite for risk assets like stocks.
Hopes for ample liquidity led foreigners to come back to the South Korean stock market. Foreigners turned into net buyers in February, ending their two-month sales in the domestic stock market.
