Korean stocks climb 0.32% on foreign buying

Korean shares ended 0.32 percent higher in thin trade Thursday as foreign investors hunted for bargains. The local currency fell against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) gained 6.04 points to finish at 1,918.57. Trading volume was thin at 297.76 million shares worth 3.88 trillion won ($3.14 billion), with gainers beating losers 426 to 382.

Local shares started off strong, but they skidded in afternoon trading as Chinese stock markets tumbled nearly 4 percent on the eve of the Group of 20 meeting in Shanghai.

"The market remains directionless due to a lack of momentum, while foreign investors are picking up oversold stocks to take advantage of the strong dollar," said Lee Jung-hee, an analyst at NH Investment & Securities.

"Investors are taking a wait-and-see approach ahead of the G-20 finance meeting. Stocks with stable earnings prospects are more preferred than high-growth shares under the current circumstances."

Foreigners purchased a net 23.33 billion won, while retail investors and institutions offloaded a net 91.48 billion won and 20.69 billion won, respectively.

Tech shares were mixed after Japanese electronics company Sharp accepted a $5.9 billion offer from the parent company of Taiwan's Foxconn Technology Group, the main assembler of Apple's iPhone

Market bellwether Samsung Electronics edged up 0.68 percent to 1,180,000 won, and global chipmaker SK hynix inched down 0.32 percent to 30,800 won.

Auto shares were depressed, with top automaker Hyundai Motor declining 1.34 percent to 147,000 won and parts maker Hyundai Mobis falling 2.44 percent to 260,000 won.

State power provider Korea Electric Power Corp. jumped 5.12 percent to 59,500 won, after the government announced 360 billion-won dividend plans. It was the firm's record-high price.

Cosmetics and hotel shares bounced back after logging sharp losses on worries over sour ties with China over Seoul's push for the deployment of a high-tech U.S. missile defense system to counter North Korean provocations.

AmorePacific, South Korea's top cosmetics maker, increased 4.08 percent to 369,500 won, and LG Household & Life gained 2.77 percent to 853,000 won.

Hotel Shilla, a hotel unit under the Samsung Group, rose 3.1 percent to 43,200 won, after falling more than 4 percent to hit this year's low on worries over its duty-free business.

The local currency closed at 1,238.8 won against the greenback, down 4.4 won from Wednesday's close.

Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys fell 0.5 basis point to 1.464 percent and the return on the benchmark five-year government bonds shed 1.0 basis point to 1.568 percent. (Yonhap)