Seoul shares gain 0.74 percent on institutional buying

South Korean stocks closed 0.74 percent higher Thursday as investors hunted for bargains following a recent plunge, analysts said. The local currency rose against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) climbed 13.16 points to 1,782.47. Trading volume was moderate at 398.9 million shares worth 3.63 trillion won ($3.16 billion), with gainers outpacing losers 502 to 302.

"Institutions led by pension funds unleashed bargain hunting, causing the key index to turn around," said Kwak Joong-bo, an analyst at Samsung Securities Co. "In the wake of the recent tumble, investors were unfazed by persistent eurozone fears."

Institutions scooped up shares worth a net 251.5 billion won, the largest in nine trading sessions, with pension funds buying the most in 13 days.

Machineries and steelmakers led the gains, with top power equipment maker Doosan Infracore spiking 6.59 percent to 17,800 won and steelmaker Hyundai Steel surging 6.04 percent to 80,800 won.

Tech firms gained, with market behemoth Samsung Electronics rising 1.21 percent to 1,172,000 won. Mobile phone maker LG Electronics shot up 6.60 percent to 59,800 won on the back of improved second-quarter earnings.

No. 2 lender KB Financial saw its shares jump 2.42 percent to 33,800 won, following a board decision not to seek a takeover of state-owned Woori Finance, the largest financial group by assets.

The local currency ended at 1,146.90 won against the greenback, up 4.3 won from Wednesday's close, as investors snapped up local equities, dealers said.

Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasuries edged up 0.03 percentage point to 2.81 percent and the return on the benchmark five-year government bonds also rose 0.03 percentage point to 2.89 percent. (Yonhap News)