S. Korean shares close higher on earnings momentum

South Korean shares on Wednesday closed higher, hitting the highest point since June 18 in 2008, on strong earnings momentum, local analysts said.

The benchmark Korea Composite Stock Price Index (KOSPI) added 22.93 points, or 1.32 percent, to close at 1,758.01, rising for the fifth straight session, according to the bourse operator Korea Exchange (KRX).

The KOSPI kicked off stronger on the sixth straight session gain in U.S. markets, as well as in Asian markets, while overseas worries including European debt woes and a slowing Chinese economy faded away.

Strong Q2 performance data by American aluminum maker Alcoa and chipmaker Intel boosted market sentiment in that global manufacturers and IT firms were showing signs of recovery, which was reflected in share prices as well.

While foreigners stayed as net buyers, retail investors and institutions made a net sell-off move.

Securities shares saw the greatest gain of 7.78 percent, together with construction shares that soared 3.44 percent, while communication sector saw a decline of 2.10 percent.

Among large cap shares, Samsung Electronics and KEPCO rose 3.52 percent and 0.47 percent, respectively, but Hyundai Motors dropped 0.72 percent.

The junior bourse KOSDAQ gained 2.18 points, or 0.44 percent, to close at 499.97.

The derivatives ended up, with the KOSPI 200 Futures market advancing 3.13 points, or 1.38 percent, to 229.27, according to the bourse operator.

Meanwhile, the local currency gained strength against the U.S. dollar, up 10 won to end trading at 1,202.50 won.

Bond prices ended down with the yield on three-year Treasury notes adding 0.02 percentage point to 3.98 percent.

Source: Xinhua