Seoul shares gain 0.42 pct on low hopes for earnings

South Korean stocks inched up 0.42 percent on Wednesday, as investors took to the sidelines on low hopes for second-quarter corporate earnings, analysts said. The local currency gathered ground against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) added 7.93 points to close at 1,912.08. Trading volume was moderate at 315.9 million shares worth 3.47 trillion won (US$3.11 billion) with gainers outstripping decliners 443 to 339.

"The main index managed to close in positive terrain because investors' expectations on earnings had been very low," said Seo Myung-chan, an analyst at Kiwoom Securities Co.

But as investors have become immune to external jitters such as uncertain monetary policies in the U.S. and China, they've been bolder in dispelling domestic concerns, Seo said in a report.

Foreigners and institutions scooped up local equities, driving up the KOSPI. Overseas investors bought a net 180.9 billion won worth of shares and institutions snapped up a net 26.6 billion won.

Large-caps finished bullish. Tech giant Samsung Electronics climbed 0.61 percent to 1,315.000 won, with No. 1 carmaker Hyundai Motor rising 0.68 percent to 223,500 won.

Leading steelmaker POSCO and auto-parts maker Hyundai Mobis shot up 1.56 percent to 326,500 won and 1.37 percent to 258,500 won, respectively.

But domestic-focused shares fell. Major banking group Shinhan Financial Group slipped 0.49 percent to 40,250 won and top mobile carrier SK Telecom dropped 0.9 percent to 219,000 won.

The local currency ended at 1,112.70 won against the greenback, up 4.3 won from Tuesday's close, as foreigners opted to increase bets in local equities, dealers said.

Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasuries edged up 0.01 percentage point to 2.89 percent and the return on the benchmark five-year government bonds rose 0.02 percentage point to 3.14 percent. (Yonhap News)