SEOUL: South Korean stocks soared Tuesday to a near six-month high as the central bank’s rate cut last week whet investors’ appetite for risk assets, analysts said. The local currency gained against the U.S. dollar.
The benchmark Korea Composite Stock Price Index jumped 42.58 points, or 2.14 percent, to close at 2,029.91. Trading volume was moderate at 350.12 million shares worth 5.31 trillion won ($4.71 billion), with gainers outpacing losers 522 to 277.
Tuesday’s closing is the highest since Sept. 26, when it ended at 2,031.64.
Analysts said the central bank’s surprise move to slash the base rate induced investors to seek equity assets. The rate cut was the first since October and took the policy rate to a record low of 1.75 percent.
“The overnight gains on Wall Street also boosted investors’ sentiment,” said Lee Kyung-min, an analyst from Daishin Securities Co. “The gains from exporters also lent support to the growth.”
Foreign investors sold more shares than they bought at 501.4 billion won, while individuals sold a net 595 billion won. Institutions scooped up a net 93.4 billion won.
Tech shares led the gain, with Samsung Electronics flirting with a 52-week high of 1,500,000 won during the trading session. It closed at 1,497,000 won, up 1.84 percent from Monday.
