South Korean stocks closed 0.11 percent higher Wednesday on rising hope over the global economic recovery following a series of advanced countries' stimulus moves, analysts said. The local currency gained against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) added 2.1 points to finish at 1,956.45. Trading volume was moderate at 332.7 million shares worth 4 trillion won (US$3.7 billion) with gainers outnumbering decliners 493 to 315.
"Seoul shares gathered ground on the main bourse as investors' sentiment was boosted by economic stimulus measures by advanced countries," said Kim Sun-young, an analyst at IBK Investment & Securities Co.
The Reserve Bank of Australia cut its key interest rates to an all-time low level to 2.75 percent on Tuesday, in an apparent move to bolster its slowing economy.
The European Central Bank also slashed its benchmark rate by a quarter percentage point to 0.5 percent earlier this month, adding to hopes for an economic recovery over the eurozone.
Analysts said, however, the growth was limited as investors also took a wait-and-see approach concerning the Bank of Korea's monetary policy meeting slated for Thursday.
South Korea's central bank froze the key interest rate for the sixth straight month in April amid some signs of the economic recovery, rejecting the government's call to join the stimulus drive.
Individuals purchased more shares than they sold at 182.3 billion won, and institutional investors scooped up a net 90 billion won. Foreign investors net-sold shares worth 262.4 billion won.
State-run Korea Gas advanced 0.89 percent to 68,200 won as South Korea is anticipated to forge deeper ties with the United States in the energy sector following the two countries' summit talk on Tuesday.
Brokerage houses also gathered ground as the Financial Services Commission pledged to make efforts to bolster local securities firms, with KDB Daewoo Securities rising 3.17 percent to 11,400 won and Woori Investment & Securities adding 6.19 percent to 12,000 won.
Mobile carriers closed bullish, with SK Telecom climbing 0.7 percent to 215,000 won and KT adding 0.39 percent to 38,950 won. LG Uplus moved up 0.42 percent to 12,000 won.
In contrast, tech shares closed lower, with market behemoth Samsung Electronics falling 0.33 percent to 1,488,000 won and its smaller rival LG Electronics losing 2.25 percent to 82,700 won.
Namyang Dairy Products, a local manufacturer of milk powder products, shed 1.76 percent to 1,003,000 won for the fifth consecutive trading session after media reports that the firm took advantage of its distributors with unlawful acts.
The local currency ended at 1,086.50 won against the greenback, up 4.90 won from Tuesday's close on the eased tension with North Korea, dealers said.
Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasuries gained 0.01 percentage point to 2.55 percent and the return on the benchmark five-year government bonds also added 0.01 percentage point to 2.62 percent. (Yonhap News)
