Kospi exceeds 1,960 after fta with china
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.