Seoul shares extend gains in late morning trade

Seoul shares extend gains in late morning trade

Korean shares extended gains late Wednesday morning as investors speculate that there will be concerted global efforts to shore up markets reeling from the post-Brexit rout.

The benchmark Korea Composite Stock Price Index rebounded for three straight sessions to rise 23.54 points, or 1.22 percent, to 1,959.76 as of 11:20 a.m., after shedding 3.38 percent from Thursday to Friday.

The local stock market is also buoyed by the government’s fiscal stimulus package worth 20 trillion won announced Tuesday to support Asia’s fourth-largest economy, analysts said.

However, it remains to be seen whether foreigners will further reduce their risky assets and increase investments in safe havens such as the dollar, they said.

Foreigners turned net buyers of domestic stocks worth 37.7 billion won after offloading a combined 755 billion won during the past three sessions. In contrast, institutions turned net sellers of local stocks worth 100 billion won after buying 620 billion won during the same period.

Last week, Britons voted to leave the 28-nation economic bloc, dealing a heavy blow to global stock markets. Almost 4 trillion won has been wiped out from global equity values since Friday.

Most large-cap stocks advanced across the board. Market bellwether Samsung Electronics Co. rose 0.21 percent.

State-run utility Korea Electric Power Corp. climbed 1.01 percent, and leading cosmetics maker AmorePacific Corp. was up 1.77 percent. Transportation stocks were standout losers.

Top carmaker Hyundai Motor Co. fell 0.36 percent, its sister company Kia Motors Corp. declined 0.11 percent, and No. 1 auto parts maker Hyundai Mobis Co. slid 0.96 percent.

The local currency was changing hands at 1,165.20 won against the U.S. dollar, up 6.10 won from the previous session’s close.


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