Seoul shares almost flat, bucking U.S. fall

South Korean stocks closed almost flat Tuesday as gains in steelmakers, shipbuilders and telecom shares offset a decline in some tech shares, analysts said. The South Korean won rose against the greenback.

The benchmark Korea Composite Stock Price Index inched up 3.33 points, or 0.17 percent, to 1,993.03. Trading volume was light at 215 million shares worth 3.7 trillion won ($3.52 billion), with gainers outpacing losers 407 to 399.

The index opened lower, tracking an overnight fall in the U.S. stock market. The Dow Jones industrial average sank 1.02 percent on Monday, and the tech-rich Nasdaq Composite Index declined 1.16 percent.

But the local stock market pared losses on gains in steelmakers, telecoms and autos.

Also, investors’ concerns over first-quarter earnings by Samsung Electronics eased, which helped support the local stock market, analysts said.

Samsung Electronics, the world’s largest maker of smartphones, estimated its first-quarter operating profit at 8.4 trillion won, down 4.3 percent from a year earlier, but the projected that figures roughly met market estimates.

“Earnings guidance by Samsung Electronics has come in line with market expectations, providing a relief to investors,” said Kang Hyun-chul, an analyst at Woori Investment & Securities. “Investors will have to digest earnings reports by major companies such as Hyundai Motor.”

Samsung Electronics closed at 1,394,000 won, down 0.21 percent.

Chipmaker SK hynix shed 0.68 percent to end at 36,750 won.

Shares of shipbuilders climbed. Hyundai Heavy Industries, the world’s largest, jumped 1.15 percent to end at 219,500 won, with Samsung Heavy Industries rising 0.62 percent to end at 32,250 won.

Naver, the operator of the country’s top Internet portal, gained 0.41 percent to close at 742,000 won, snapping a decline for a second day in a row.

Carmakers traded higher as well, with Hyundai Motor advancing 0.81 percent to 248,500 won and the country’s biggest auto-parts maker Hyundai Mobis rising 0.48 percent to end at 315,500 won.

Some defensive shares also gathered ground. Top mobile operator SK Telecom advanced 2.20 percent to close at 202,000 won, and No. 2 player KT shot up 6.84 percent to end at 31,250 won on news that it will accept voluntary retirement from senior employees in an apparent bid to tighten its belt after lackluster performances.

The local currency ended at 1,052.20 won to the U.S. dollar, up 3.20 won from Monday’s close. (Yonhap)