South Korean stocks closed 1.03 percent higher Monday as investors scooped up shares on bargain hunting, analysts said. The local currency fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) added 19.56 points to finish at 1,926.31. Trading volume was low at 254.9 million shares worth 3.6 trillion won (US$3.25 billion) with gainers outnumbering decliners 521 to 283.
"The market gain came as investors scooped up undervalued shares despite the listed firms' weaker-than-expected first-quarter earnings," said Kang Hyun-gie, a researcher at I'M Investment & Securities Co.
"However, the growth was limited due to the lack of growth momentum in the market," Kang added. "Last week's G-20 meeting of financial officials also came as a disappointment as it did not come up with any actions to curb the weak yen."
The world's 20 major economies agreed Friday to step up efforts for "strong, sustainable and balanced" growth of the global economy, while staying away from competitive currency devaluation.
Although finance ministers and central bank governors from the G-20 expressed worries over possible side effects to foreign exchange rates, they agreed Japan's quantitative easing is designed to stop deflation and support domestic demand.
Foreigners offloaded a net 8.4 billion won and retail investors sold a net 13.3 billion won. In contrast, institutions scooped up a net 20.3 billion won.
Tech shares closed higher, with market behemoth Samsung Electronics rising 1.9 percent to 1,503,000 won and top chipmaker SK hynix adding 0.69 percent to 29,000 won. Top flat panel manufacturer LG Display climbed 2.18 percent to 30,450 won.
Grand Korea Leisure, a South Korean operator of a casino business for foreign tourists, added 3.89 percent to 34,750 won on the back of the rising number of Chinese tourists.
Brokerage houses also gathered ground, with Samsung Securities rising 0.8 percent to 50,500 won and KDB Daewoo Securities moving up 2.37 percent to 10,800 won. Woori Investment & Securities advanced 2.28 percent to 11,200 won.
In contrast, carmakers closed lower on the gloomy earnings outlook amid the weak yen, with No. 1 player Hyundai Motor falling 0.27 percent to 183,000 won and its smaller affiliate Kia Motors moving down 1.49 percent to 49,650 won.
Builders also lost ground, with leading Hyundai Engineering & Construction falling 0.51 percent to 59,000 won and GS Engineering & Construction moving down 1.94 percent to 30,400 won.
The local currency ended at 1,119.00 won against the greenback, down 2.70 won from Friday's close, due to rising concerns over the eurozone following the downgrade of Britain's sovereign rating, dealers said.
Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasuries moved up 0.01 percentage point to 2.62 percent and the return on the benchmark five-year government bonds also gained 0.01 percentage point to 2.69 percent. (Yonhap News)
