May 26, 2017 / 3:00 AM / 7 months ago

S.Korea stocks at another record high; won flat on oil price drop

    * KOSPI hits as high as 2,364.80
    * Market still expects further gains from KOSPI -analyst

    SEOUL, May 26 (Reuters) - South Korean shares shot to a
record intra-day high early Friday and was set to post biggest
weekly percentage gain since mid-March after the central bank
gave a bullish outlook on the economy and the Wall Street closed
higher overnight. 
    The Korea Composite Stock Price Index (KOSPI)         peaked
at 2,364.80 points before settling back at 2,350.15 points as of
0239 GMT.
    The index was still up 0.3 percent from from the record
close notched on Thursday, and was holding a year-to-date gain
of 16.1 percent.
    "More and more investors are realizing that the KOSPI has
been really undervalued for the past years as the earnings of
the companies improved at a fast rate starting from late last
year," said Bae Sung-young, a stock analyst at KB Securities.
    The Bank of Korea on Thursday kept interest rates steady 
and said it may revise up its growth forecast of 2.6 percent 
for this year as exports are strong and the President Moon
Jae-in's administration is formulating multi-billion-dollar
fiscal stimulus measures.             
    The KOSPI was even nicknamed as "Boxpi" from local investors
due to its lack of long term movement for six years.
            
    "Now that it has just broken out of its 'boxed-in' trading,
investors think the index has a lot more room for extra gains,"
said Bae.
    He added that sustained demand could push the index up as
high as 2,450 this year.
    Offshore investors were set to be net buyers, purchasing
58.6 billion Korean won ($52.36 million) worth of KOSPI shares
near mid-session, buttressing the index. 
    Shares of LG Display             gained 4 percent while
Samsung SDI             rose 2 percent. 
    The South Korean won        edged down as dollar weakness
calms down while global oil prices made a big drop. 
    The won            stood at 1,120.2 to the dollar, down 0.3
percent compared to Thursday's close of 1,116.5.
    June futures on three-year treasury bonds         gained
0.01 point to 109.48. 
    
                       0239 GMT    Prev close
 Dollar/won             1,120.2       1,116.5
 Yen/won             10.0367/12       10.0076
 *KTB futures            109.48        109.47
 KOSPI                 2,350.15      2,342.93
 * Front-month futures on three-year treasury bonds
    

 (Reporting by Dahee Kim)
  

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