SEOUL, Nov 12: Seoul shares rebounded from a two-month low on Tuesday and were poised to halt a six-day skid as investors hunted for bargains in large-caps like Samsung Electronics and Hyundai Motor.
The Korea Composite Stock Price Index (KOSPI) was up 1.1 percent at 1,999.42 points as of 0200 GMT after hitting an intraday high of 2,000.27, regaining the psychologically important 2,000 level.
‘The recent decline opened up room for bargain hunting, but thin trading volume underscores how investors are seeking more clues on the timeline for the Fed to cut back its stimulus,’ said Lim Dong-rak, an analyst at Hanyang Securities.
Investors were awaiting Thursday’s Senate hearing on Fed chair nominee Janet Yellen for clarity on the U.S. Central bank’s tapering timeline.
The results of China’s plenum meeting that will unveil a reform agenda for the next decade were also closely eyed, especially after data showed the country’s central bank tightened liquidity in October.
Offshore investors picked up a net 22.8 billion won ($21.3 million) of local shares in the morning, poised to snap six straight sessions of selling. Institutions purchased a net 15.6 billion won of local shares to support the main bourse.
Of the top 20 components in KOSPI, which accounts for more than half of market capitalisation, 17 marked gains in the morning.
Samsung Electronics Co Ltd and Hyundai Motor Co , two of the largest components in KOSPI, rose 2.2 percent and 1.8 percent, respectively.
Shipbuilders and chemicals added support to the broader index, with Hyundai Mipo Dockyard Co Ltd up 3 percent and Lotte Chemical Corp rising 2 percent.
But varnish manufacturer KCC Corp dropped 3.4 percent after it reported weaker-than-expected earnings for the July-September quarter on Monday.
Advancing shares outnumbered decliners 522 to 238.
The KOSPI 200 benchmark of core stocks rose 1.3 percent, while the junior KOSDAQ advanced 1.4 percent following a sharp 2.5 percent decline in the previous session. ($1 = 1072.4000 Korean won)
(agencies)
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