Seoul shares traded higher on Wednesday, helped by a rally in Wall Street overnight after the U.S. Fed's decision to hold interest rates steady, while lower oil prices supported transport and manufacturing issues.
The Korea Composite Stock Price Index <.KS11> was up 1.9 percent at 1564.73 points as of 0053 GMT.
'The U.S. Fed's dovish interest rate stance cast some relief over the markets, and coupled with easier oil, is boosting appetite for shares. We are seeing foreigners net buying shares for a change today,' said Lee Sun-yeob, a market analyst at Goodmorning Shinhan Securities.
Foreign investors were net buyers of 42.5 billion won ($41.92 million) worth of stocks on Wednesday morning, after 3 consecutive selling sessions.
'However we are probably riding on a relief rally today, which will likely be short-lived. There needs to be fundamental improvements in the economy (and) U.S. housing markets for a meaningful rally to take place,' Lee added.
Transport and manufacturing issues such as Korean Air Line <003490.KS> and Hyundai Motor <005380.KS> rallied after U.S. crude <CLc1> fell below $120 a barrel on Tuesday, easing worries about operational costs and consumer sentiment.
Korean Air Line jumped 5.5 percent to 45,100 won and Asiana Airlines (020560.KS - news) <020560.KS> rose 4.67 percent to 4,815 won, while Hyundai Motor climbed 2.29 percent to 71,500 won. Ssangyong Motor (003620.KS - news) <003620.KS> climbed 2.6 percent to 2,955 won despite the news that it will halt production for about two weeks from August 6.
Retail shares also traded higher, with Shinsegae Co Ltd (004170.KS - news) <004170.KS> rising 4.25 percent to 540,000 won and Lotte Shopping Co Ltd (023530.KS - news) <023530.KS> up 2.16 percent to 308,000 won.
Shares related to Kumho Asiana Group including Kumho Tires <073240.KS> and Kumho Industrial <002990.KS> rallied after the tyre unit of the group said late on Tuesday that Beacon, a Caymen Island-based company, had bought for 108.7 billion won ($106.9 million) a 10.71 percent stake in Kumho Tires that was previously held by Cooper Tires & Rubber Co <CTB.N>.
Kumho shares had tumbled recently on worries about the group's liquidity level after it said it was looking for an investor to take over the stake from Cooper Tires.
Kumho Industrial jumped 5.21 percent to 19,200 won and Kumho Tires gained 2.82 percent to 7,650 won. Kumho Petrochemical <011780.KS> was up 5.0 percent to 32,550 won.
Meanwhile financials such as Shinhan Financial Group <055550.KS> and Hana Financial Group <086790.KS> advanced after their U.S. peers soared after the Fed's rate decision.
Shinhan Financial Group traded 2.64 percent higher at 48,650 won and shares in Hana Financial Group were up 2.8 percent to 40,350 won.
Shipbuilders also rebounded after their latest sharp losses, with Samsung Heavy Industries <010140.KS> up 2.68 percent to 34,450 won and STX Shipbuilding <067250.KS> up 3.73 percent to 26,450 won.
($1=1013.7 Won)
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment