South Korean shares on Wednesday rose for the first time this week, led by exporters such as Samsung Electronics, after falling oil prices raised optimism about global consumer demand.
Transportation stocks such as shipping firm Hyundai Merchant Marine Co also gained, contributing to a rebound in the benchmark KOSPI from its lowest close since August 28 on Tuesday.
"Oil prices have fallen to low levels, and that is helping improve sentiment about the global economic outlook," said Choi Yong-kyu, a fund manager at IBK SG Asset Management. The benchmark Korea Composite Stock Price Index (KOSPI) rose 0.38 percent to end at 1,333.13, after rising as much as 1.1 percent in morning trade.
Gains were capped late in the session as investors pulled back ahead of the simultaneous expiry of options and futures on Thursday, which normally can increase volatility, especially in South Korea, as the country has the most actively traded derivatives market in the world.
Exporters led gainers, as a drop in oil prices could also help spur consumer demand by reducing the effects of higher gas prices on spending. A weaker oil price also reduces company overheads, lessening pressure on corporate margins.
Shares in Samsung Electronics Co Ltd, the world's biggest maker of memory chips, rose 1.58 percent to 642,000 won, after a 3.8 percent fall over the past five sessions. Home appliances maker LG Electronics Inc bounced 2.31 percent to 61,900 won.
Transportation stocks also gained, with Hyundai Merchant Marine ending up 0.87 percent to 17,300 won, while carrier Asiana Airlines Inc gained 1.55 percent to 6,550 won.
Brokerages advanced amid expectations a recovery in trading volumes this month would help bolster earnings, helping offset the impact from weaker trading in July and August. Daewoo Securities Co rose 1.27 percent to 15,900 won.
Trade volume reached 244.6 million shares worth 2.6 trillion won, data at 0630 GMT showed, compared to 266.8 million shares worth 2.5 trillion won on Tuesday. Gainers edged out decliners by 398 to 322 with 100 titles ending flat.
Foreign investors sold a net 19.2 billion won ($20.02 million) in shares on the main bourse, while institutional investors sold a net 18.6 billion won. However, retail investors bought a net 38.8 billion won.
The September KOSPI 200 futures index rose 0.35 point to 172.75, while the underlying KOSPI 200 spot index gained 0.65 point to 172.93. South Korea's junior and tech heavy Kosdaq market rose 0.65 percent to finish at 592.45.
Comments
Comments are closed.