By Lee Hyo-sik
Staff Reporter


Seoul stocks closed sharply higher Monday, with the main index breaking through a historically significant 1,200 point mark for the first time ever, as investors turned bullish on the news of stabilizing oil prices.

The benchmark Korea Composite Stock Price Index (KOSPI) rose 30.53 points, or 2.6 percent, to close at 1,206.41 Monday from last Friday’s close. The index set another landmark three weeks after it broke the record of 1,138.75 points set on Nov. 8, 1994.

The 100-share blue chip KRX 100 gained 61.2 points, or 2.52 percent, to 2,487.38 and the tech-heavy Kosdaq index also advanced 6.74 points, or 1.24 percent, to 550.4.

``A drop in oil prices encouraged both foreign and domestic investors to purchase local stocks,’’ said Lee Jong-woo, head of research at Hanwha Securities.

Crude oil futures for October delivery in the U.S. fell $2.31 to $64.19 per barrel on Friday as Hurricane Rita weakened, causing less damage to oil production facilities and refineries in the Gulf of Mexico.

``The KOSPI was able to break a 1,200 point mark on the back of ample liquidity, the easing of geopolitical concerns involving North Korea and recovering domestic demand,’’ Lee said.

He predicted that the index would rise to as high as 1,250 points by the year end, further boosted by the continued corporate restructuring and strong corporate results in the third and fourth quarters.

Most blue chips closed sharply higher. Samsung Electronics closed up 12,000 won or 2.05 percent at 597,000, and SK Telecom added 4,000 won or 1.98 percent to 206,500.

POSCO closed up 10,500 won or 4.75 percent at 231,500.

Financial also closed sharply higher across the board. Kookmin Bank ended up 2,300 won or 3.82 percent at 62,500, and Hana Bank closed up 1,750 won or 5.33 percent at 34,600.

leehs@koreatimes.co.kr