South Korean stocks closed almost unchanged Tuesday as hopes of the government's stimulus measures pared down morning losses following overnight falls on Wall Street, analysts said. The local currency gained against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) added 1.76 points, or 0.09 percent, to finish at 1,922.21. Trading volume was moderate at 377.5 million shares worth 4.78 trillion won (US$4.29 billion) with losers outnumbering gainers 464 to 350.
The KOSPI fell to 1,896.69 during the trading session, marking the first time for the index to hover below the 1,900 mark since November 2012.
"The local stock market edged up due to the government's decision to implement economic stimulus measures to boost its economy," said Kwak Byung-ryeol, an analyst from Eugene Investment & Securities Co.
South Korea on Tuesday drew up an extra budget worth 17.3 trillion won for this year in a bid to revitalize its economy faced with gloomy market conditions at home and abroad.
"However, the growth was limited due to the overnight losses on Wall Street, sparked by the weaker-than-expected Chinese economy," Kwak added.
China expanded 7.7 percent on-year in the first quarter, according to its government, slowing from a 7.9 percent on-year growth in the previous quarter and below the consensus of an 8.0 percent on-year gain in a poll by Dow Jones.
Market watchers added growing concern over the suspected terrorist attack in the United States also dented investors' sentiment.
Foreigners offloaded a net 245.1 billion won. In contrast, retailers scooped up a net 128.8 billion won and institutional investors purchased a net 112.7 billion won.
Affiliates of STX Group gathered ground on reports that the firm plans to expand its business in China, with STX Offshore & Shipbuilding rising 7.82 percent to 4,000 won and STX Engine adding 0.11 percent to 4,570 won.
Cheil Worldwide, South Korea's top advertising company, advanced 6.54 percent to 27,700 won due to the brighter outlook on the firm's overseas business.
Builders traded higher, with GS Engineering & Construction adding 0.31 percent to 32,750 won and Hyundai Engineering & Construction rising 1.05 percent to 57,800 won.
Tech blue chips also gained, with market behemoth Samsung Electronics rising 0.33 percent to 1,528,000 won, and its smaller affiliate LG Electronics adding 1.29 percent to 884,000 won.
In contrast, carmakers lost ground, with No. 1 industry player Hyundai Motor decreasing 0.78 percent to 191,500 won and top auto parts maker Hyundai Mobis falling 0.56 percent to 267,500 won.
Airlines finished lower due to the falling demand from Japan amid the North Korean risks, with top flag carrier Korean Air Lines falling 7.03 percent to 33,050 won and Asiana Airlines losing 3.07 percent to 5,050 won.
The local currency ended at 1,115.20 won against the greenback, up 5.30 won from Monday's close, due mainly to indications of warnings from the U.S. about the yen's rapid depreciation, dealers said. (Yonhap News)
