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S Korean shares rise on China exports

2013-05-08 16:06 Xinhua     Web Editor: Gu Liping comment

South Korean shares rose on Wednesday due to better-than-expected exports in China, South Korea's largest trading partner, but the gain was limited ahead of the Bank of Korea (BOK)'s monetary policy meeting.

The benchmark Korea Composite Stock Price Index (KOSPI) rose 2. 1 points, or 0.11 percent, to close at 1,956.45. Trading volume stood at 332.72 million shares worth 3.96 trillion won (3.64 billion U.S. dollars).

China's exports rose 14.7 percent in April from a year earlier, beating the market consensus of around 9 percent. Imports increased 16.8 percent, sending the trade surplus to 114.53 billion yuan last month.

The export rise in the world's No.2 economy boosted expectations that South Korea's biggest trading partner would continue to perform well.

The KOSPI's gain, however, was limited ahead of the regular policy meeting for the central bank. Market watchers expected the BOK to freeze its policy rate at 2.75 percent once again at the May rate-setting meeting scheduled for Thursday.

The Reserve Bank of Australia lowered its borrowing costs to a record low in the previous day following suits in India and Europe. The rate cut raised expectations for policy coordination, but experts predicted the BOK's rate freeze amid the better-than- expected GDP data. South Korea's real GDP grew 0.9 percent in the first quarter from three months earlier, beating market estimates.

Retail and institutional investors bought shares worth 182.3 billion won and 90.1 billion won each, while foreign investors sold a net 262.9 billion won worth of stocks. Foreigners sold more than 200 billion won worth of stocks for two straight sessions.

Among large-cap stocks, gainers outnumbered decliners. Market bellwether Samsung Electronics fell 0.3 percent, and consumer electronics giant LG Electronics slid more than 2 percent. The nation's No.2 carmaker Kia Motors dipped 1.7 percent and retail giant Lotte Shopping declined 1.4 percent.

Top wireless carrier SK Telecom gained 0.7 percent and Shinhan Financial Group, the country's No.3 banking group, advanced 1.1 percent.

The local currency finished at 1,086.5 won against the greenback, up 4.9 won from Tuesday's close.

Bond prices ended lower. The yield on the liquid three-year treasury notes added 0.01 percentage point to 2.55 percent, and the return on the benchmark five-year government bonds rose 0.01 percentage point to 2.62 percent.

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