Seoul stocks extend gains late Fri. morning on ECB's rescue program

SEOUL, June 5 (Yonhap) -- South Korean stocks extended gains late Friday morning amid improved investor sentiment, following the European Central Bank's surprise expansion of the rescue program for the pandemic-hit economy.

The benchmark Korea Composite Stock Price Index (KOSPI) rose 15.29 points, or 0.71 percent, to 2,166.47 as of 11:20 a.m.

The advance came after the ECB rolled out an emergency asset-purchasing program worth 1.35 trillion euros (US$1.5 trillion), more than double the previously suggested 600 billion euros.

The gains also follow five consecutive sessions of rise, largely afforded by growing hopes for a quick economic recovery.

"The Korean stock market is under valuation pressures," Kiwoom Securities analyst Seo Sang-young said.

"Central banks in major economies have predicted gradual economic recovery, yet stock markets hiked faster on the anticipation of a v-shaped recovery. Such discrepancy increases possibilities for sell-offs," he said.

Most large caps traded higher.

Market bellwether Samsung Electronics gained 0.73 percent, and No. 2 chipmaker SK hynix advanced 2.05 percent.

Top chemical maker LG Chem added 3.35 percent, with leading carmaker Hyundai Motor climbing 1.84 percent.

The local currency was trading at 1,215.75 won against the U.S. dollar, up 2.95 won from the previous session's close.

jwc@yna.co.kr
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