Off the wire
• Backgrounder: Basic facts about Israeli elections  • Funeral of Lahore church blast victims held in Pakistan  • Commentary: Former NSA chief's irresponsible remarks on China reek of cyber McCarthyism  • Independent firms to audit SOE overseas assets  • Roadside bomb wounds 4 civilians in E. Afghanistan  • Dushanbe to host CSTO FM meeting  • Israelis go to polls in parliamentary elections  • 120 historical items donated to Nanjing Massacre museum  • Roundup: S. Korea to decide on U.S. missile defense deployment "on its own"  • Feature: China's largest bank boosts Sino-LatAm cooperation  
You are here: 　 Home

Roundup: S. Korean shares soar to this year's high on rate cut

Xinhua, March 17, 2015 Adjust font size:

South Korean shares soared to this year's high on Tuesday as market players belatedly reflected positive effects from the Bank of Korea's (BOK) interest rate cut last week. Hopes for additional rate cut boosted sentiment among investors.

The benchmark Korea Composite Stock Price Index (KOSPI) jumped 42.58 points, or 2.14 percent, to 2,029.91, the highest close since Sept. 26, 2014 when the index closed at 2,031.64. Trading volume stood at 353 million shares worth 5.33 trillion won (4.72 billion U.S. dollars).

It was the largest daily increase this year as the KOSPI belatedly reflected the rate cut effect. The BOK lowered its policy rate last week by 25 basis points to an all-time low of 1. 75 percent.

The rate cut fueled worries that the fresh record-low low would boost the already massive household debts, but such concerns eased as the weak South Korean currency, caused by the rate cut, may boost exports that account for around half of the economy.

A sharp gain in U.S. and European stocks overnight also bolstered positive sentiment among investors, especially among foreigners. Foreign investors raised stock holdings by a whopping 503 billion won. Institutional investors bought shares worth 93 billion won, but retail investors sold shares worth 596 billion won to lock in recent profits.

Export shares led the KOSPI advance. Market bellwether Samsung Electronics increased 1.8 percent to settle at 1,497,000 won after topping 1.5 million won for the first time in about 15 months. It reflected expectations for a rise in sales of its new flagship smartphone Galaxy S6, which is expected to bolster the company's earnings in the first half of this year.

Hyundai Motor, which has the second-largest market capitalization only after Samsung Electronics, advanced 3.7 percent. Leading chemical firm LG Chem climbed 3.4 percent, and the No.1 cosmetics maker AmorePacific gained 2.8 percent. The world's largest shipbuilder Hyundai Heavy Industries soared 4.2 percent, but the country's No.1 steelmaker POSCO declined 1 percent as prosecutors are investigating the alleged corruption of the company.

The South Korean currency finished at 1,128.9 won against the greenback, up 2.6 won from Monday's close.

Bond prices ended lower. Yields on the liquid three-year treasury notes added 1.6 basis points to 1.872 percent, and the return on the benchmark 10-year government bonds rose 0.4 basis points to 2.319 percent. Endi