SEOUL, June 14: Seoul shares rose in a cautious recovery on Friday after slumping to a 7-month closing low in the previous day, helped by Wall Street’s overnight rebound on the back of stronger-than-expected US economic data.
However, the gains were modest as foreign investors continued to offload shares for a sixth straight session, selling a net 110 billion won ($96.97 million) worth of stocks, on track for the biggest weekly sales since August 2011.
The Korea Composite Stock Price Index was up 0.4 percent at 1,890.27 points at 0215 GMT. The market has dropped 1.7 percent so far this week, in sympathy with a global rout in equities amid concerns the US would reduce its massive stimulus later this year.
‘Sentiment has improved following forecast-beating economic data from the US, but caution still largely rules markets ahead of the FOMC’s meeting next week,’ said Kim Soon-young, a market analyst at IBK Securities.
The US Federal Open Market Committee’s rate-setting meeting and Fed Chairman Ben Bernanke’s press conference are scheduled on June 9. Some analysts expect the Fed chief – whose comments three weeks ago suggesting a potential wind-back of stimulus in coming months jolted markets – to assuage investor fears about its bond-buying programme.
Samsung Electronics shares advanced 0.5 percent, snapping a 6-session losing streak during which the stock lost 12 percent of its value.
Woongjin Chem shares rose 2.3 percent after LG Chem said on Friday that it was considering taking over the industrial materials making affiliate of debt-ridden Woongjin Group.
A rebound in crude oil prices overnight boosted domestic crude oil refiners and chemical companies.
Shares in SK Innovation advanced 1.1 percent and GS Holdings, the holding company of GS Caltex, the country’s No.2 crude oil refiner, advanced 0.6 percent.
Defensive stocks in the telecommunication sector lagged as investors booked profits on shares that had outperformed during the market’s recent downturn.
SK Telecom Co Ltd declined 3 percent and LG Uplus Corp fell 2.3 percent.
Samsung Heavy Industries Co Ltd advanced 1.6 percent after winning a series of orders this week. The company said yesterday that it has won an order worth $3 billion from an unnamed major oil company.
The KOSPI 200 benchmark of core stocks edged up 0.4 percent, while the junior KOSDAQ was up 0.07. ($1 = 1134.4000 Korean won) (agencies)
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