South Korean stocks closed 0.84 percent higher Thursday on the back of a brighter outlook over Wall Street as U.S. firms' first-quarter earnings met market expectations, analysts said. The local currency gained against the
U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) added 16.29 points to finish at 1951.60. Trading volume was moderate at 329.4 million shares worth 4.5 trillion won (US$4 billion) with gainers outnumbering decliners 438 to 373.
"Investors scooped up undervalued shares despite the lack of growth momentum in the local stock market," said Kang Hyun-gie, a researcher at I'M Investment & Securities Co.
"The move came as the U.S. stock market is anticipated to gather ground down the road on the back of improved earnings by its listed firms," Kang said. "However, the growth was limited as investors still sat on the sidelines concerning South Korea's economic recovery."
Foreigners sold more shares than they bought at 81.1 billion won, extending their selling streak to ten sessions. Retail investors offloaded a net 106.4 billion won, while institutions bought more than they sold.
Carmakers closed bullish, with No. 1 industry player Hyundai Motor rising 5.68 percent to 195,500 won and its smaller affiliate Kia Motors adding 4.37 percent to 52,500 won.
Construction firms also closed higher, with Hyundai Engineering & Construction adding 0.34 percent to 59,600 won and GS Engineering & Construction adding 0.33 percent to 30,000 won.
In contrast, mobile carriers lost ground, with No. 2 KT falling 0.96 percent to 9,310 won and LG Uplus, the smallest industry player, losing 1.52 percent to 9,310 won. Leading SK Telecom closed flat at 189,500 won.
Affiliates of STX Group, South Korea's shipping conglomerate, fell sharply on reports that the business group is facing a liquidity crisis, with STX Pan Ocean falling 11.76 percent to 3,300 won and STX Heavy Industries losing 10.65 percent to 3,105 won.
Tech blue chips closed mixed, with market behemoth Samsung Electronics moving up 0.54 percent to 1,494,000 won, while its smaller affiliate LG Electronics shed 1.67 percent to 88,500 won.
Top chipmaker SK hyix added 1.37 percent to 29,500 won.
The local currency ended at 1,112.10 won against the greenback, up 5.60 won from Wednesday's close, on the back of South Korea's better-than-expected economic growth for the first quarter, dealers said.
Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasuries fell 0.05 percentage point to 2.56 percent and the return on the benchmark five-year government bonds also shed 0.05 percentage point to 2.63 percent. (Yonhap News)
