Shares close 0.25 percent higher on bluechip gains

Korean stocks finished 0.25 percent higher Tuesday led by gains in large-cap shares on positive earnings outlooks, analysts said. The local currency rose against the U.S. dollar.

After swerving in and out of negative territory, the benchmark Korea Composite Stock Price Index moved up 4.49 points to finish at 1,793.93. Trading volume was moderate at 481.6 million shares worth 4.09 trillion won ($3.57 billion), with decliners far outstripping gainers 538 to 274.

“Market heavyweights led the index’s gain. Foreign investors scooped up Samsung Electronics and Hyundai Motor as they are optimistic about South Korean tech and auto firms’ second quarter earnings,” said Kim Ju-yong, an analyst from Bookook Securities Co.

“These industries are on a roll despite a global economic slowdown.”

Earlier, the KOSPI fell to around the 1,780 level on renewed European concerns of Spain’s soaring debt rate and Germany’s possible credit rating downgrade, following a nearly 2 percent dive in the previous session.

“The main index plunged 33.48 points in the last trading session and it started weak today due to the deepening European debt woes. But it bounced back at the psychological support level of 1,780 points,” added Kim.

Blue chips led the rise, with world’s biggest memory chipmaker Samsung Electronics climbing 0.69 percent to 1,170,000 won and its smaller rival SK Hynix adding 2.21 percent to 20,800 won.

Carmakers also gained ground thanks to positive second-quarter profits to be announced later this week. Hyundai Motor rose 1.83 percent to 223,000 won and its smaller affiliate Kia Motors went up 2.43 percent to 76,000 won.

Mobile carriers finished strong as profits from the so-called long-term evolution services continued to rise faster than expected. Leading wireless operator SK Telecom surged 6.02 percent to close at 141,000 won and No. 2 player KT jumped 5.07 percent to 33,150 won.

However, builders and refiners were bearish, with market leaders Hyundai Engineering & Construction falling 3.67 percent to 57,800 won and SK Innovation losing 0.65 percent to 143,000 won.

The local currency ended at 1,146.1 won against the greenback, up 0.5 won from Monday’s close, on the back of the KOSPI’s rise, dealers said. (Yonhap News)