SEOUL: South Korean stocks rose for the third consecutive day on Thursday as eased global uncertainties boosted investor sentiment, analysts said. The Korean won hit a fresh two-year low against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) gained 14.98 points, or 0.72 percent, to close at 2,087.89. Trading volume was heavy at 682.6 million shares worth 7.04 trillion won (US$6.12 billion), with winners beating decliners 454 to 353.
Analysts said foreigners turned to net buyers due to the short-term optimism, keeping their eyes on the highly-anticipated rate policy in the U.S. and China’s economy and financial market.
U.S. Fed Chair Janet Yellen said Wednesday that the U.S. economy is poised for further improvement that will allow the central bank to raise interest rates this year, but gave no direct hint on the timing or the pace of a hike.
“As uncertainties in Greece and the Chinese market subdued market volatility, players’ focus is on corporate earnings and the dollar’s strength, which will be swayed by any hints from the Fed Chair’s testimony at Congress,” said Kim Sung-hwan, an analyst at Bookook Securities. “Shares will show differentiated performance by sector depending on their earnings and business outlook.”
Two Samsung subsidiaries advanced ahead of a crucial shareholders’ meeting on their merger approval on Friday. A South Korean appeals court on Thursday rejected the latest effort by U.S. hedge fund Elliott Associates to block the merger of two Samsung affiliates, clearing the last hurdle for the vote.
Cheil Industries, a de facto holding firm of Samsung Group, rose 5.72 percent to 194,000 won, and Samsung C&T, a construction and trading subsidiary, increased 3.43 percent to 69,300 won.
Samsung Electronics, the crown jewel of the nation’s largest conglomerate, scored 3.81 percent to 1,282,000 own, and Samsung SDS, a key IT unit widely believed to be the next in line for restructuring, jumped 9.35 percent to 286,500 won.
