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Strong foreign buying boosts S.Korea stocks to new highs
October 12, 2017 / 2:53 AM / 2 months ago

Strong foreign buying boosts S.Korea stocks to new highs

    * KOSPI touch as high as 2.466.32 points
    * Offshore investors enjoying buying spree for a third
straight session
    * Foreign demand expected to remain high for a while
-analyst

    SEOUL, Oct 12 (Reuters) - South Korean shares notched
another record high on Thursday as  foreign investors continued
to bet on strong quarterly profit reports ahead of tech giant
Samsung Electronics'             earnings guidance later in the
week.
    The Korea Composite Stock Price Index (KOSPI)         was up
0.2 percent at 2,462.00 points as of 0223 GMT, an all-time
intraday high. 
    Samsung Electronics is expected to forecast a record
quarterly 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.             
    Its shares dipped 0.5 percent on Thursday, after jumping 
6.6 percent over the past three sessions.
    "Foreign investors, who were usually heavy net sellers in
the past couple of months, purchased over 1 trillion won worth
of KOSPI shares just on Tuesday and Wednesday, anticipating 
South Korea's third-quarter corporate earnings," said Kim
Ji-hyung, a stock analyst at Hanyang Securities.
    Offshore investors bought a net 74.3 billion Korean won
($65.44 million) worth of local equities near mid-session.
    Kim said the foreign buying spree is expected to last for a
while, offering further upside for the benchmark index.
    At least one key technical indicator, however, is suggesting
the market is starting to run a bit hot, with the KOSPI's
relative strength index (RSI) now in the low 80's. Levels above
70 are typically considered overbought.
    A brokerage index         saw a hefty gain of 4.6 percent,
reflecting the bourse's recent rally. Samsung Securities
            rose 5.1 percent and Korea Investment Holdings
            jumped 8.7 percent. 
    Tech firm LG Electronics             also extended its
streak, climbing 2 percent after soaring 8.2 percent on
Wednesday.
    The South Korean won            was little changed at
1,136.4 to the U.S. dollar compared to Wednesday's close of
1,135.2.
    December futures on three-year treasury bonds         gained
0.06 point to 108.59. 
    
                       0226 GMT    Prev close
 Dollar/won             1,136.4       1,135.2
 Yen/won             10.1076/12       10.0605
 *KTB futures            108.59        108.53
 KOSPI                 2,462.00      2,458.16
 * 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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