April 27, 2024

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[THE INVESTOR] South Korean stocks rallied by more than 1 percent to end at a six-year high on April 25, as investors‘ concerns over a French presidential election race abated and foreign investors snatched up local stocks for earnings hopes, analysts said. The Korean won fell against the US dollar.

The benchmark KOSPI soared 23.11 points, or 1.06 percent, to close at 2,196.85, marking the highest since April 22, 2011, when the comparable figure was 2,197.82 points. Trade volume was moderate at 272 million shares worth 4.77 trillion won (US$4.24 billion), with gainers outnumbering losers 534 to 255.

The local stock market opened as US stocks resumed upward movement on April 24, and foreign investors scooped up market heavyweights such as Samsung Electronics and Hyundai Motor.

“Foreign investors have extended their buying, with market heavyweights benefiting from such a massive purchases,” said Kim Ye-eun, an analyst at Cape Investment & Securities.

Foreign investors bought South Korean stocks for a third straight session. Foreign buying between April 20 and April 25 came to nearly 700 billion won, according to data from Korea Exchange, the local bourse operator. On April 25 alone they scooped up some 648 billion won worth of local stocks.

Foreigners’ buying spree of local stocks came despite heightened tensions on the Korean Peninsula over North Korea‘s missile and nuclear weapons programs. The analyst said upbeat corporate earnings will also help the local stock market move up going forward.

Samsung Electronics, the country’s top market cap, jumped 3.54 percent to end at 2,135,000 won on the back of a rosy outlook for the sales of its latest high-end smartphone, the Galaxy S8.

SK hynix, a major chipmaker, remained flat at 52,400 won paring earlier gains, as investors locked in gains.

POSCO, the top steelmaker, fell 0.73 percent to end at 272,000 won.

Hyundai Motor, the country‘s top automaker, soared 2.12 percent at 144,500 won.

AmorePacific, South Korea’s top cosmetics makers, slumped 4.4 percent to end at 293,500 won after reporting weaker-than-expected first-quarter earnings.

The local currency closed at 1,125.40 won against the US dollar, up 4.5 won from the previous session‘s close.

By Alex Lee and newswires (alexlee@heraldcorp.com)