Seoul shares close higher on foreign buying

South Korean stocks closed higher Monday on continued net-buying by foreign investors, analysts said, while the gain was limited due to an upcoming European monetary meeting later this week. The won closed lower against the greenback.

The benchmark Korea Composite Stock Price Index edged up 7.04 points, or 0.35 percent, to 2,002.00. Trading volume was moderate at 262 million shares worth 3.1 trillion won ($3.03 billion), with losers outpacing gainers 536 to 275.

“Seoul shares continued to gather ground as foreign investors became net buyers for the 15th consecutive trading session,” said Kang Hyun-gie, an analyst at I’M Investment & Securities Co. “The net-buying rally mostly came as investors are exiting from the U.S. amid the market’s stagnant outlook.”

Analysts, however, said the gain was limited as investors await the results from the European Central Bank’s monetary policy meeting slated for Thursday. The ECB is expected to take a set of market stimulus moves.

While the ECB’s move to add some vitality to the market is a plus for the emerging markets as it sparks demand for risky assets, analysts said a weaker-than-expected stimulus package may have an adverse impact.

Foreigners scooped up a net 208.3 billion won. In contrast, individual investors offloaded a net 57.6 billion won, and institutional investors sold more shares than they bought at 155.8 billion won.

Tech shares closed higher, with Samsung Electronics adding 0.83 percent to 1,455,000 won and SK hynix climbing 1.25 percent to 44,700 won. LG Electronics gained 3.02 percent to 75,100 won.

Shipbuilders closed mixed, with Hyundai Heavy Industries rising 0.27 percent to 185,500 won while Samsung Heavy Industries fell 0.18 percent to 28,100 won. Daewoo Shipbuilding & Marine Engineering advanced 1.12 percent to 27,150 won.

SK Telecom, South Korea’s top mobile carrier, moved up 1.37 percent to 222,500 won, while No. 2 KT shed 0.99 percent to 30,100 won. LG Uplus fell 1.98 percent to 9,400 won.

Hyundai Engineering & Construction fell 0.37 percent to 53,200 won, while Daewoo Engineering & Construction edged up 0.96 percent to 8,430 won. Daelim Industrial edged up 1.12 percent to 81,500 won.

The local currency ended at 1,024.10 won to the U.S. dollar, down 4 won from Friday’s close. (Yonhap)