Seoul shares hit fresh six-week closing high
Sunday, 20 June 2010
SEOUL, June 19 (Reuters): Seoul shares rose to hit a fresh six-week closing high Friday, fuelled by defensive issues such as cosmetics maker Amorepacific.
The Korea Composite Stock Price Index (KOSPI) finished up 0.24 per cent at 1,711.95 points, the highest close since early May.
"Shares have been rising rather steeply in recent weeks and are losing steam. We are also seeing increasing institutional selling as fund redemptions rise at the index's current level," said Bae Sung-young, a market analyst at Hyundai Securities.
The main index is still up about 4.3 per cent on the month, outperforming the MSCI Asia-Pacific ex-Japan's 3.6 per cent rise. The KOSPI is up about 1.73 per cent on the year, versus the MSCI Asia ex-Japan's over 5 per cent fall.
"Like China, the South Korean economy is making a rapid V-shaped recovery on the back of strong performance by its corporate players, which are seen increasing global market share and outdoing their international peers.
That's stoked appetite for local stocks," said Ham Sung-sik, a senior analyst at Daishin Securities, adding views on auto and tech firms were particularly bullish.
Foreign investors were buyers of a net 167.2 billion won ($137.9 million) worth of shares, picking up stocks for a sixth consecutive session.
Defensive issues fuelled the market's gain.
Shares in Amorepacific hit a historical high as the cosmetic naker's outlook continued to strengthen, analysts said.
The Korea Composite Stock Price Index (KOSPI) finished up 0.24 per cent at 1,711.95 points, the highest close since early May.
"Shares have been rising rather steeply in recent weeks and are losing steam. We are also seeing increasing institutional selling as fund redemptions rise at the index's current level," said Bae Sung-young, a market analyst at Hyundai Securities.
The main index is still up about 4.3 per cent on the month, outperforming the MSCI Asia-Pacific ex-Japan's 3.6 per cent rise. The KOSPI is up about 1.73 per cent on the year, versus the MSCI Asia ex-Japan's over 5 per cent fall.
"Like China, the South Korean economy is making a rapid V-shaped recovery on the back of strong performance by its corporate players, which are seen increasing global market share and outdoing their international peers.
That's stoked appetite for local stocks," said Ham Sung-sik, a senior analyst at Daishin Securities, adding views on auto and tech firms were particularly bullish.
Foreign investors were buyers of a net 167.2 billion won ($137.9 million) worth of shares, picking up stocks for a sixth consecutive session.
Defensive issues fuelled the market's gain.
Shares in Amorepacific hit a historical high as the cosmetic naker's outlook continued to strengthen, analysts said.