SEOUL, May 8 (Xinhua) -- South Korean stocks hit a new closing high Monday on expectations for the launch of a new government ahead of a presidential by-election the following day.
The benchmark Korea Composite Stock Price Index (KOSPI) soared 51.52 points, or 2.30 percent, to settle at the daily high of 2,292.76. Trading volume stood at 277 million shares worth 6.5 trillion won (5.7 billion U.S. dollars).
Foreign investors led the record-breaking trend that lasted for the second consecutive session. The presidential election scheduled for Tuesday boosted expectations that the new government will announce policies to stimulate the lackluster economy.
Political uncertainty is forecast to be eased as the country is being headed by Prime Minister Hwang Kyo-ahn as acting president.
Foreigners bought 545 billion won worth of local stocks, remaining net buyers for three straight sessions. Institutional investors purchase shares worth 85 billion won, but individual investors dumped 663 billion won worth of shares.
The French presidential election result also moderated worries among local stock investors about a possible exit of France from the European Union (EU).
Wall Street gained over the weekend thanks to positive jobs data and rebounding crude prices, helping prop up sentiment among South Korean investors.
The KOSPI's total capitalization reached 1,487.23 trillion won, touching the record high.
Market bellwether Samsung Electronics jumped 3.3 percent to close at 2.351 million won, the highest-ever in the company's history. Samsung shares continued to rise for the ninth consecutive session.
The biggest auto parts maker Hyundai Mobis advanced 7.9 percent, and the Number one cosmetics company Amore Pacific jumped 6.4 percent. Top automaker Hyundai Motor increased 4 percent, and memory chip giant SK Hynix gained 1.8 percent.
South Korea's currency finished at 1,134.1 won against the greenback, up 1.3 won from the previous close.
Bond prices ended lower. Yields on the liquid three-year treasury notes added 2.9 basis points to 1.711 percent, and the return on the benchmark 10-year government bonds rose 3.3 basis points to 2.245 percent.
