Seoul shares extended gains on Tuesday, with foreign investors turning net buyers after a bank merger deal in Greece and positive US consumer spending data lifted sentiment. The Korea Composite Stock Price Index finished up 0.78 percent at 1,843.82 points, rising for a fourth straight session. The junior Kosdaq market was up 1.08 percent.
The KOSPI 200 spot index gained 1.86 points to 237.64 and KOSPI 200 September futures advanced 2.15 points to 237.55. "US consumer data showed that concerns about a double-dip in the US economy was overdone, although it will slow," Lee Sang-jae, an analyst at Hyundai Securities.
Foreign investors were net buyers after three consecutive sessions of selling, snapping up 196 billion won ($182.5 million) worth of shares. "The KOSPI is recovering from steep falls. This is driven by price merits rather than better fundamentals," said Lee Jae-man, an analyst at Tong Yang Securities.
"The index may have further room to rise as US President Barack Obama is set to unveil plans (next week) aimed at spurring job growth," he said. Bank issues were among the top gainers after Greece's Alpha and EFG Eurobank sealed a merger on Monday, which is expected to trigger more deals to shore up banks battered by the debt crisis and recession. Shares in Woori Finance Holdings jumped 3.51 percent, while KB Financial climbed 2.85 percent.
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