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Blistering earnings bets push S.Korea stocks closer to record high
October 11, 2017 / 3:36 AM / 2 months ago

Blistering earnings bets push S.Korea stocks closer to record high

    * KOSPI hovering at 11-week high
    * KOSPI will soon hit fresh peak and reach as high as 2,600
in Q4 -analyst
    * Samsung Elec's earnings guidance to be the key

    SEOUL, Oct 11 (Reuters) - South Korean shares rose on
Wednesday and flirted with a new record high as investors bet
local companies such as Samsung Electronics will report robust
third-quarter earnings in coming weeks.
    As of 0301 GMT, the Korea Composite Stock Price Index
(KOSPI)         was up 0.7 percent at 2,449.93 points, an
11-week high and not far from its all-time intraday high of
2,453.17 set on July 25.
    "It is very likely that the KOSPI would soon notch a fresh
record-high and the index could reach as high as 2,600 points by
this quarter," said Lee Kyung-min, a stock analyst at Daishin
Securities.
    Samsung Electronics'             earnings guidance later
this week will be the biggest key on determining how much the
KOSPI will move in the short-term, Lee said.
    Its shares extended their recent rally, rising 2.4 percent.
    The company is expected to forecast a record third-quarter
profit on Friday thanks to the strong market for memory chips,
and as mobile earnings bounce back from last year's costly
withdrawal of the Note 7.                
    "Exports at home are still very firm and the global economy
as a whole is showing strong signs of recovery, with the IMF
upgrading its economic growth outlook for this year. All these
would greatly support the local economy," added Lee.
    The IMF (International Monetary Fund) said on Tuesday it
expects the global economy to grow 3.6 percent for 2017, and 3.7
percent for 2018, driven by a pickup in trade, investment, and
consumer confidence.             
    Offshore investors continued to be net buyers of KOSPI
shares, purchasing 148.3 billion Korean won ($130.49 million)
worth near mid-session. 
    Advancers outnumbered decliners 486 to 296.
    Shares of tech firm LG Electronics             soared as
much as 7.7 percent on better-than-expected revenue guidance
thanks to the company's firm home appliances sales, erasing
Tuesday's losses.             
    The South Korean won            edged down 0.2 percent and
stood at 1,137.2 against the dollar, slightly lower than
Tuesday's close of 1,135.1.
    December futures on three-year treasury bonds         gained
0.04 point to 108.52. 
    
                       0301 GMT    Prev close
 Dollar/won             1,137.2       1,135.1
 Yen/won             10.1062/69       10.0854
 *KTB futures            108.52        108.48
 KOSPI                 2,449.93      2,433.81
 * Front-month futures on three-year treasury bonds

For a round up of market news, please see our daily Asia Morning
Call report            
    

 (Reporting by Dahee Kim; Editing by Kim Coghill)
  

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