April 21, 2024

• 

[THE INVESTOR] South Korean stocks extended their rally to a sixth day on Thursday, hitting a fresh six-year high amid growing hopes for improved corporate earnings, analysts said. The Korean won fell against the US dollar.

The benchmark KOSPI edged up 1.62 points, or 0.07 percent, to close at 2,209.46, after reaching as high as 2,211.59 points.

Trade volume was moderate at 379 million shares worth 6.6 trillion won (US$5.84 billion), with losers outnumbering gainers 452 to 330.

The local stock market opened lower on overnight falls on Wall Street and profit-taking by investors.

But the main index turned higher after Samsung Electronics, the top market cap here, said it would buy back its stocks worth 9.3 trillion won this year and cancel its treasury stocks worth 49 trillion won down the road in return for nixing its plan to transform into a holding company structure.

“The global market seems to take a breather after recent gains. Improved earnings and economic data, however, will help the local stock market stay on an upward course,” said Hong Choon-wook, an analyst at Kiwoom Securities.

Foreign investors have scooped up some 1.6 trillion won worth of local stocks for the past week, sending the KOSPI higher, as European political risk eased and the US economy showed signs of improvement.

Samsung Electronics, the country‘s top market cap, gained 2.43 percent to end at 2,192,000 won on strong first-quarter earnings and shareholder-friendly measures. The company hit an intra-day record high of 2,260,000 won.

Earlier in the day, the tech behemoth said its first-quarter net profit shot up 46.29 percent from a year earlier to reach 7.68 trillion won, aided by a robust chip business which posted record-high performance. Operating profit reached 9.89 trillion won, also up 48.27 percent from a year earlier.

Samsung C&T, the de facto holding firm for the country’s largest conglomerate, dropped 6.84 percent to end at 122,500 won, after Samsung Electronics said it would not seek to transform into a holding company structure.

SK hynix, a major chipmaker, fell 0.19 percent at 53,600 won paring earlier gains.

Posco, the top steelmaker, declined 0.55 percent to end at 271,000 won, and SK Innovation, the top refiner in the country, climbed 0.87 percent to end at 174,500 won.

Hyundai Motor, South Korea‘s No. 1 automaker, shed 2.65 percent at 147,000 won after reporting a 21 percent decline in first-quarter net profit due to weak sales in China and emerging markets. Its smaller affiliate Kia Motors also dropped 2.51 percent to finish at 35,000 won after suffering a 19 percent on-year drop in its first-quarter net profit due to weak demand in China and the US.

Naver, the operator of the country’s top Internet portal, dipped 1.98 percent to end at 791,000 won.

The local currency closed at 1,130.10 won against the US dollar, down 5 won from the previous session‘s close.

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