Seoul: Shares extend gains on policy expectations

[SEOUL] South Korean shares settled higher for the fourth straight session on Wednesday, buoyed by expectations of policy support to mitigate the economic impact of the Covid-19 pandemic. 

The Seoul stock market's main Kospi closed up 9.03 points, or 0.46 per cent, at 1,989.64.

South Korea said the government and the central bank would set up a 10 trillion won (S$11.5 billion) special purpose vehicle to directly purchase commercial paper, to calm a local debt market hammered by the pandemic.

Stock prices rose on expectations of policy support, but it is unlikely that they would gain a stronger momentum at current index readings, said Na Jeong-hwan, an analyst at DS Investment & Securities.

Foreigners were net buyers of 78.1 billion won ($63.50 million) worth of shares on the main board.

REUTERS