The Korea Herald

피터빈트

Seoul stocks, won sharply up on ECB stimulus hope, upbeat data

By KH디지털2

Published : Oct. 23, 2015 - 15:37

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South Korean stocks jumped 0.86 percent Friday as hopes for additional stimulus measures in Europe and better-than-expected domestic growth data boosted appetites for riskier assets, analysts said. The South Korean won sharply rose against the U.S. dollar.

The benchmark Korea Composite Stock Price Index leaped 17.39 points to 2.040.39. Trading volume was moderate at 641.85 million shares worth 5.23 trillion won ($4.65 billion), with winners beating losers 481 to 332.

Analysts said ECB's dovish stance and Korea's better-than-forecast growth data sent positive signals to the market.

"Hopes for ECB's quantitative easing measures within this year and the possibility of a delay in the U.S. interest rate hike lifted the equity market," Kim Yoon-seo, an analyst at KTB Investment & Securities, said. "The domestic market is expected to rise further on the back of foreign capital inflow in the short-term."

ECB chief Mario Draghi said Thursday that the bank will consider bolstering its bond-buying program this year, sending European and U.S. stocks higher.

On Friday, South Korea's central bank said the economic growth hit a five-year high in the third quarter thanks to a strong rebound in domestic demand, recovering from the fallout from Middle East Respiratory Syndrome.

Investors snapped up recently-battered stocks after the market dipped nearly 1 percent in the previous session.

SK Innovation, the nation's top refiner, vaulted 8.76 percent to 118,000 won after it swung to a net profit in the July-September period on continued improvement in its lubricant oil business and reduced inventory losses.

Auto shares suffered setback, however, after the local currency's sharp rise against the greenback fueled concerns over their price competitiveness in the global market.

Top automaker Hyundai Motor declined 2.47 percent to 158,000 won, and its sister company Kia Motors retreated 1.83 percent to 53,500 won.

Construction shares were mixed.

Hyundai Engineering and Construction advanced 3.06 percent to 37,100 won as the No. 2 builder released upbeat quarterly results on the back of large-scale projects, including those in the United Arab Emirates.

In contrast, Samsung Engineering, a construction unit of Samsung, extended losses to fall 19.88 percent to 20,750 won after the firm on Thursday shocked the market with huge losses from delayed projects in the Middle East.

The local currency ended at 1,124.7 won against the greenback, up 13.9 won from the previous day and the highest close since July 2, on hopes for additional global stimulus measures.

Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys shed 0.4 basis point to 1.650 percent and the return on the benchmark five-year government bonds lost 1.1 basis points to 1.811 percent. (Yonhap)