SEOUL, Nov 15: Seoul shares surged back to the key 2,000 level and were on track for their biggest gain in four months on Friday on growing expectations that the U.S. Federal Reserve will maintain its stimulus programme for now.
U.S. Federal Reserve Chair nominee Janet Yellen told the Senate Banking Committee she would press forward with the Fed’s ultra-easy monetary policy until officials were confident a durable economic recovery was in place.
The Korea Composite Stock Price Index (KOSPI) was up 1.7 percent at 2,001.18 points as of 0208 GMT, regaining the psychologically important 2,000 level. A 1.7 percent gain would be the sharpest one-day percentage rise since July 11.
‘The market is flourishing from a ‘Yellen effect’, soothing worries about liquidity to bring back foreign inflows,’ said Kim Hak-gyun, a market analyst at KDB Daewoo Securities.
Foreign investors purchased a net 68.9 billion won ($64.5 million) of local shares in the morning, poised to halt a nine-session streak of net selling.
Foreign investors picked up large-caps, especially the top 20 components in the main index that account for more than half of market capitalisation.
Samsung Electronics Co Ltd, the largest component in KOSPI, rose 2 percent and Hyundai Motor Co , the second largest, advanced 2.5 percent.
Hyundai Motor’s affiliates Hyundai Mobis Co Ltd and Kia Motors Corp, which are the third and fifth largest, gained 2 percent and 1.7 percent, respectively.
Other heavyweights such as SK Hynix Inc, Shinhan Financial Group Co Ltd and Hyundai Heavy Industries Co Ltd rose more than 3.5 percent to underpin the market’s rise.
Advancing shares outnumbered decliners 503 to 273.
The KOSPI 200 benchmark of core stocks rose 1.8 percent, while the junior KOSDAQ edged up 0.3 percent. ($1 = 1067.9000 Korean won)
(AGENCIES)
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