KOSPI Rises to 6-Week High


By Cho Hyung-kwon
Staff Reporter


The Korean won gained against the U.S. dollar to its strongest level in almost seven years Monday as the greenback continued to weaken against major global currencies. The Korean stock prices rose to a six-week high Monday.



Traders rushed to sell the dollar on speculation that the government is not likely to intervene in the market for the time being.
The won gained 12 won from last Friday to trade at 1,092 won against the dollar, the first time the exchange-rate fell below the 1,100 won level since Nov. 24, 1997, when it closed at 1,085 won.

Meanwhile, the Seoul stock market shrugged off concerns about the strengthening won as it rose for the fourth consecutive session to it highest in more than a month.

The Korea Composite Stock Price Index (KOSPI) gained 5.66 points, or 0.64 percent to 882.33, while the tech-heavy Kosdaq rose 4.11 points, or 1.11 percent, to 372.91.

The benchmark jumped to as high as 891 points during the day, the highest in almost seven months, but eventually gave up the gains in the afternoon.

Declines in oil prices and advances in the U.S. stock market helped push stocks higher, easing concerns about the profitability of exporters due to the stronger won.

The West Texas Intermediate crude oil for December delivery dropped 4.6 percent to $47.32 last Friday on the New York Mercantile Exchange and fell below $47 in after-hours electronic trading.

Korea Exchange Bank climbed 6.55 percent to 8,450 won, Samsung Electronics rose 1.78 percent to 456,500 won and POSCO added 2.26 percent to 180,500 won.

KT, LG.Philips LCD, Samsung SDI and Hana Bank also closed higher, while Hyundai Motor fell 1.07 percent to 55,200 won and SK Telecom lost 0.75 percent to 198,500 won.

Foreign investors were the largest net buyers of 167 billion won, but retail investors sold more than 154 billion worth of stocks.

Gaining issues outnumbered fallers by a four to three margin as some 262 million shares changed hands.

The yield on the benchmark three-year Treasury bond rose 4 basis points to 3.41 percent.

kevincho@koreatimes.co.kr