Seoul: Shares rally, won gains ahead of Fed's policy verdict

[SEOUL] Seoul shares jumped two per cent to a one-month high on Wednesday as foreigners finally turned net buyers after a 29-day selling spree, helping to underpin demand as markets waited for this week's outcome of the Federal Reserve rate-setting meeting.

The Korea Composite Stock Price Index (KOSPI) closed up two per cent to 1,975.45 points, just off an afternoon high at 1,978.68, the strongest intraday level since Aug 18.

Foreigners purchased a net 217.6 billion won (S$259 million) shares in the main board, breaking a selling spree that stretched into 29 consecutive sessions. In that period, they offloaded a net 5.83 trillion won worth of shares.

Samsung Heavy Industries Co Ltd and Samsung Engineering Co Ltd soared 11.3 per cent and 18.6 per cent, respectively, on expectations of a merger following comments from Samsung Heavy Industries chief executive Park Dae-young.

On the currency market, the won closed local trade up 0.9 per cent at 1,175.9 to the dollar, bolstered by foreign buying in domestic equities.

REUTERS