Korean shares break record highUpdated: 2014-07-29 03:34:31 (KST)
Monday was another record-breaking day for the nation's benchmark index.
After surpassing the 2,50 mark at one point in mid-day trading, the KOSPI settled in at 2,48 points, picking up its biggest gains in nearly nine months.
Kim Hyoung-ryoul , an analyst at Seoul-based Kyobo Securities Company says the impact of economic plans laid out by the country's new finance minister have played an important part in the record-breaking gain.
"The local stock market is reflecting on Choi's economic plan, which shows the government's willingness to breathe life into the Korean economy. The main difference between the new economic team and the previous one led by Hyun Oh-seok is that other government departments such as the Ministry of Strategy and Finance and the Bank of Korea, are on the same page with Choi on what kind of policies should be made in order to diagnose the Korean economy."
Last Thursday, the nation's new economic team led by Finance Minister Choi Kyung-hwan, unveiled a 40 billion dollar stimulus plan to spur growth by inducing spending and promoting corporate activity.
Although the new finance minister has left the issue of setting the country's interest rate to the Bank of Korea, Choi said he expects the monetary authority will make decisions to counter the economic downturn.
Meanwhile, Kang Hyun-chul , an analyst at Seoul-based Woori Investment and Securities says the country's rising exports played a big part in the KOSPI's surge.
"Exports this year have reached all-time highs and company performance has also improved, compared to last year. Exports to the U.S. and Europe steadily rose and exports to China are expected to rise during the July and August period, this year."
Korea logged a trade surplus for the 29th straight month in June as exports amounted to 47.8 billion U.S. dollars last month, up 2-and-a-half percent from a year earlier.
Kim Ji-yeon, Arirang News.
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