The Korea Herald

지나쌤

Stock markets rally on gov't stimulus, foreign investors: data

By 신현희

Published : Sept. 9, 2014 - 11:35

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Some 510 stocks on South Korea's main bourse have hit 52-week highs so far this year, more than half of them in the second half, exchange data showed Tuesday.

The tech-heavy secondary bourse also rallied, pushed by foreign investors, according to the data.

Domestic consumption, services and real estate-related shares led the rise on the benchmark Korea Composite Stock Price Index in the period between Jan. 3 and Sept. 3 this year, with 510 stocks reaching their highest in 52 weeks, the data showed. Among them, 331, or 64.9 percent, hit their peak in the second half.

Analysis showed shares in industries being promoted by the government's new economic team, such as consumption and real estate, led the rise.  

Shares in logistics and food were bolstered by the increasing number of Chinese travelers to Korea. Steel and metal shares were unexpected winners as global oversupply eased.

Hankook Cosmetics was the biggest winner, gaining 230.71 percent in just the first half of the year, as investors anticipated high demand for the brand popular among Chinese shoppers.

On the other hand, 368 stocks had fallen to a 52-week low this year as of Sept. 3, 32.3 percent of them in the second half.

Pharmaceuticals and electronics were the biggest losers, the data showed.

The secondary KOSDAQ has risen more than 14 percent so far this year, closing beyond the 570-point line for the first time in four months on Aug. 28.

Data on the KOSDAQ showed foreign investors had increased, accounting for 11 percent of the market cap for the secondary bourse. The last time that the portion of foreign investors exceeded 11 percent was in November 2008.

The portion, however, is still lower than the over-20 percent reached in 2004. The drop is partly to do with Naver, the country's top portal operator, relocating from the KOSDAQ to the KOSPI in 2008, which immediately sent foreign investors' presence in the tech bourse to the single digits.

Market watchers are expecting a pickup when Daum-Kakao lists next month. Kakao Corp., the operator of free messenger service Kakao Talk, and the country's No. 2 portal Daum are scheduled to merge through a stock swap, creating a company that likely will become the biggest company on the KOSDAQ. (Yonhap)