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Roundup: S. Korean shares jump on 1st foreign purchase in 30 days

Xinhua, September 16, 2015 Adjust font size:

South Korean shares jumped Wednesday as foreign investors purchased local stocks for the first time in 30 trading days on expectations that the U.S. Federal Reserve may not raise interest rates this month.

The benchmark Korea Composite Stock Price Index (KOSPI) advanced 37.89 points, or 1.96 percent, to 1,975.45 at the close. Trading volume stood at 577.39 million shares worth 5.84 trillion won (4.97 billion U.S. dollars).

Worries about the Fed's rate hike were relieved ahead of the two-day Federal Open Market Committee (FOMC) meeting that kicks off on Wednesday. U.S. stocks ended higher overnight on the reduced concerns.

Foreigners raised local stock holdings by 218 billion won, ending 29 trading days of selling spree on speculation that the Fed may delay its first rate hike since the 2008 global financial crisis.

Adding to the optimism, global credit rating company Standard & Poor's upgraded South Korea's sovereign credit rating by one notch from A-plus to AA-minus.

It marked the first time that three major global rating appraisers, including Moody's and Fitch, imposed the rating on South Korea simultaneously.

Market watchers forecast that the sovereign rating upgrade may cause foreign capital flow into the South Korean stock market despite uncertainties over the U.S. rate hike and economic slowdown in China.

Local financial institutions purchased shares worth 358 billion won, but retail investors dumped stocks worth 594 billion won in a bid to lock in recent profits.

Large-cap shares gained ground. Market bellwether Samsung Electronics advanced 2.6 percent, and top carmaker Hyundai Motor surged 4.2 percent. Memory chip giant SK Hynix soared 4.5 percent, and the Number 2 automaker Kia Motors gained 2.1 percent.

Leading chemical firm LG Chem jumped 7.5 percent, and the biggest auto parts maker Hyundai Mobis increased 2.6 percent.

The South Korean currency finished at 1,175.9 won against the greenback, up 10.8 won from Tuesday's close.

Bond prices ended lower. Yields on the liquid three-year treasury notes rose 1.7 basis point to 1.670 percent, and the return on the benchmark 10-year government bonds gained 2.2 basis points to 2.274 percent. Endi