Seoul shares up 0.2 pct on eased Greek woes, extra budget hopes

South Korean stocks closed 0.2 percent higher Wednesday as abated concerns such as the Greece debt issue, together with rising expectations about an extra budget, continued to boost investors' sentiment here, analysts said. The South Korean won lost ground against the U.S. dollar.

The benchmark Korea Composite Stock Price Index added 4.33 points to 2,085.33. Trading volume was moderate at 393.6 million shares worth 5.26 trillion won ($4.76 billion), with gainers outpacing losers 530 to 290.

Analysts said investors' sentiment was aided by eased uncertainties in the global financial market and reduced woes over the outbreak of Middle East Respiratory Syndrome.

"It is likely that the KOSPI has already reached its nadir, amid reports over the possible resolution of the Greece problem and the government's announcement of stimulus plans," said Kim Jung-hwan, an analyst at KDB Daewoo Securities Co. "However, an excessive optimism should be avoided, as there are no clear indications regarding an economic recovery."

The government said earlier it is considering a package of measures to prop up weak economic growth, including a supplementary budget, adding that the MERS outbreak has exerted a considerable negative impact on the economy.

Foreigners scooped up a net 62.5 billion won. In contrast, retail investors sold more shares than they bought at 25.9 billion won and institutions offloaded a net 33.2 billion won.

Market behemoth Samsung Electronics shed 1.44 percent to 1,302,000 won amid reports that its second-quarter earnings will be weaker than expected.

Other tech shares lost ground, with chipmaker SK hynix falling 1.81 percent to 43,350 won. LG Electronics, Samsung's smaller local rival, remained unchanged at 50,800 won.

Carmakers gained ground, with industry leader Hyundai Motor rising 1.53 percent to 133,000 won and No. 2 Kia Motors moving up 1.42 percent to 47,450 won. Top auto parts maker Hyundai Mobis advanced 4.48 percent to 210,000 won.

Hanwha Corp. rose 3 percent to 48,050 won following the rising hope that its latest merger with Samsung units will add to its profits.

Mobile carriers traded mixed, with top player SK Telecom rising 0.59 percent to 257,500 won and No. 3 LG Uplus adding 3.86 percent to 9,690 won. KT shed 0.17 percent to 28,850 won.

SK C&C shed 2 percent to 269,000 won as the National Pension Service, the country's largest institutional investor, said it is against a proposed merger with SK Holdings. The institution is the No. 2 shareholder of SK Holdings.

The local currency ended at 1,108.40 won against the greenback, down 3.80 won from the previous trading session. (Yonhap)