Seoul shares end higher on abated Scotland concerns

South Korean stocks closed higher Friday amid abated geopolitical uncertainties in Europe, as voters in Scotland chose to stay part of the United Kingdom, analysts said.

The benchmark Korea Composite Stock Price Index gained 6.08 points, or 0.3 percent, to 2,053.82. Trading volume was moderate at 391 million shares worth 5.02 trillion won ($4.81 billion), with gainers outpacing losers, 529 to 269.

Analysts said Friday’s rebound came after Scotland voted against splitting from Britain in its referendum on independence, clearing a major uncertainty in the European market that has been working against the local financial market.

Kang Hyun-gie, an analyst from I’M Investment & Securities, said the gain was more of a reaction.

“Rather than an improvement in market conditions, a recoup from excessive loss in the previous trading session from the fall in Hyundai Motor shares contributed to the gain,” Kang said.

After suffering a 9.17 percent drop on Thursday, Hyundai Motor slipped 1.52 percent to 195,000 won.

Its auto parts arm Hyundai Mobis also decreased 1.56 percent to 253,000 won, while Kia Motors edged up 0.92 percent to 54,900 won.

Hyundai Motor on Thursday was announced the winner of the bid to buy a 79,345-square-meter plot of land in southern Seoul owned by state power provider Korea Electric Power Corp. The automaker committed 10.55 trillion won to the purchase, raising market concerns that it would hurt the company’s liquidity.

Foreigners sold a net 270.5 billion won, while retail investors scooped up a net 105.1 billion won. Institutions bought more shares than they sold at 220.6 billion won.

Tech shares traded mixed, with Samsung Electronics closing unchanged at 1,210,000 won and LG Display also holding steady at 70,100 won. SK hynix added 2.56 percent to 44,000 won.

Mobile carriers also gained ground after starting to take preorders for Samsung’s new Galaxy Note 4 smartphones Thursday, with SK Telecom rising 1.92 percent to 292,500 won and KT moving up

1.7 percent to 35,850 won. The smallest player LG Uplus climbed 1.25 percent to 12,150 won.

Builders closed mixed, with Hyundai Engineering & Construction falling 0.46 percent to 65,000 won, while Daewoo Engineering & Construction gained 0.36 percent to 8,390 won. GS Engineering & Construction moved up 4.43 percent to 38,900 won.

The local currency ended at 1,044.60 won against the greenback, down 1.20 won from Thursday’s close. (Yonhap)