Kospi ex­ceeds 1,960 after fta with china

JoongAng Daily - - Business & Finance - BY KIM EUN-JI, BLOOMBERG eu­n­jik@joongang.co.kr

Korean shares man­aged to reach the 1,960 thresh­old yes­ter­day thanks to for­eign in­vestors who pur­chased for a sec­ond day after Korea and China reached agree­ment on a free trade pact. This is the first time since Oct. 1 that for­eign in­vestors pur­chased two days in a row.

The bench­mark Kospi added 4.77 points, or 0.24 per­cent, to hit 1,963 points.

Sam­sung Elec­tron­ics dropped 2.92 per­cent to 1.23 mil­lion won ($1,126). LG Elec­tron­ics, on the other hand, added 0.77 per­cent to 65,300 won.

Other ma­jor IT shares also rose. SK Hynix inched up 0.11 per­cent to 47,600 won. LG Dis­play climbed 0.58 per­cent to 34,500 won.

Hyundai and Kia stocks ral­lied after the company re­port­edly bought back their own shares. Hyundai Mo­tor soared 5.71 per­cent to 176,000 won. Kia Mo­tors climbed 2.02 per­cent to 55,600 won. How­ever, Hyundai Mobis, which rose as high as 246,500 won, dropped 1.26 per­cent to 235,000 won at the close.

Posco plunged 3.24 per­cent to 299,000 won. Hyundai Steel dropped 0.6 per­cent to 65,800 won.

Naver slipped 0.13 per­cent to 742,000 won. Daum Kakao, how­ever, climbed 0.5 per­cent to 140,000 won.

Amore Pa­cific, the na­tion’s largest cos­met­ics company, sky­rock­eted 9.28 per­cent to 2.37 mil­lion won.

As for air­line car­ri­ers, Korean Air ad­vanced 7.08 per­cent to 41,600 won and Asiana Air­lines gained 3.6 per­cent to 4,600 won.

LG Chem dropped 1.3 per­cent to 190,000 won, while Lotte Chem­i­cal added 0.95 per­cent to 159,000 won.

Yield on three-year trea­sury bonds ad­vanced 6 ba­sis points to 2.18 per­cent. The 10year yield added 3 ba­sis points to 2.72 per­cent.

“The com­ments [Fi­nance Min­is­ter Choi Kyung-hwan] made after mar­kets closed [on Mon­day] are af­fect­ing bonds,” said Kong Dong-rak, a Han­wha In­vest­ment and Se­cu­ri­ties an­a­lyst.

“It seems Choi thinks we need to watch the im­pact of re­cent re­duc­tions, which is eas­ing ex­pec­ta­tions for an ad­di­tional rate cut within the year.”

The won weak­ened to 1,091.6 to the dol­lar.

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