SEOUL: South Korean stocks rose 0.63 percent Tuesday, as expectations of improved corporate earnings boosted investor sentiment here, analysts said. The local currency gained ground against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) climbed 12.40 points to close at 1,990.65. Trading volume was moderate at 5.56 trillion won (US$4.8 billion). But decliners outstripped gainers 442 to 370 as the main index’s gain was largely driven by a bullish run in a handful of big-caps.
“Samsung Electronics’ operating income is expected to come in at 6.59 trillion won, slightly surpassing the latest market consensus, which will mark a good start for the earnings season,” said Kim Sung-hwan, an analyst at Bookook Securities Co.
The tech behemoth soared 3.23 percent to 1,151,000 won, as market watchers are speculating that the company, scheduled to release its third-quarter earnings preview on Wednesday, could announce additional shareholder-friendly measures, including a share buyback.
SK hynix, the world’s No. 2 memory chip maker, surged 5.23 percent to 37,200 won on heightening hopes for a better earnings result.
Major foodmakers also finished higher. Confectionery firm Orion shot up 4.21 percent to 1,064,000 won and another player, CJ Cheiljedang, hiked 3.19 percent to 404,000 won.
In contrast, auto issues fell sharply, dampened by the outlook that automakers’ profitability will be hurt by the free trade agreement, or the Trans-Pacific Partnership, reached between the U.S. and 11 Pacific Rim countries on late Monday (Seoul time).
The deal will lift tariffs on Japanese manufacturers that sell goods in the U.S. — key rivals of South Korean firms — which will in turn undermine Korean companies’ footing in the competitive global market.
Top automaker Hyundai Motor tumbled 3.7 percent to 158,000 won, with its smaller affiliate, Kia Motors, also slumping 3.24 percent to 50,800 won.
