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THU, 2014-10-23  KST

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Korea's benchmark index breaks another record

Updated: 2014-07-28 12:13:43 KST
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The Korean stock market rose sharply during the fourth week of July.
The KOSPI closed at its highest level this year rising above the 2,30-mark last Friday led by gains in utility stocks.
Last Tuesday, foreign-ownership of Korean stocks amounted to more than 420 billion dollars.
This is just shy of the previous record set last October.
Kang Hyun-gie, an analyst at Seoul-based I'm Investment and Securities partly attributes the rise to low market interest rates.
Four major commercial banks in Korea have lowered interest rates by between zero.two-percentage points to 1-percent.
Kang says the KOSPI's rise is riding on the back of the economic recovery in China in the second quarter a sign Beijing's stimulus moves to boost domestic consumption are beginning to have an impact.
The world's second largest economy expanded 7.5-percent in the three-month period from a year ago up zero.one-percentage-point from the previous quarter.


"When we look at the types of industries leading the gains we can see they're related to electricity and communications. They aren't export-driven sectors, like the auto and steel industries, which traditionally reflect the state of the Korean economy as a whole."

The Korean economy grew zero.six percent in the second quarter from the previous period, its slowest pace in more than a year.
The analyst did not rule out the impact of economic plans laid out by the country's new finance minister, but says they alone could not have driven the record-breaking gains seen last week.
Kim Ji-yeon, Arirang News.


Reporter : jiyeonkim@arirang.co.kr

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