South Korean stocks finished 0.39 percent higher on Friday, as overseas investors extended their buying spree despite the country’s weak growth data, analysts said.
The local currency fell against the U.S. dollar.
Extending a winning streak for a fifth consecutive session, the benchmark KOSPI rose 7.65 points to 1,964.83. Trading volume was moderate at 442 million shares worth 6.03 trillion won ($5.37 billion) with gainers leading losers 492 to 331.
Even though the KOSPI has posted gains for five straight sessions, it moved with a greater volatility on Friday, falling as much as 0.39 percent in the morning as retail investors locked in profit.
“There is not much momentum in the economy or in corporate earnings to sustain the current level,” said Kim Hyoung-ryoul, an analyst at Kyobo Securities Co. “Some investors view the market’s recent rise as having been too steep and they are cautious that the gain may not be sustainable.”
South Korea posted the weakest quarterly growth in two years for the final quarter of 2011, as the eurozone crisis squeezed domestic consumption and corporate investment.
Foreign investors, however, shrugged off growth concerns and maintained their position as net buyers of Seoul shares for the 12th straight session.
Large-cap tech exporters were firm. Samsung Electronics rose 1.08 percent to 1,125,000 won after reporting a record-high operating profit for the final quarter of last year.
Its rival LG Electronics surged 5.16 percent to 81,500 won and LG Display added 1.96 percent to 28,550 won on expectations that the worst has passed.
Despite stellar earnings reports by big-cap exporters such as Samsung Electronics, other exporters continued to struggle with some analysts warning that situations in Europe may spread and hamper exports.
Leading car maker Hyundai Motor slumped 3.49 percent to 221,000 won and its smaller affiliate Kia Motors declined 2.75 percent to 67,100 won.
The local currency closed at 1,123.2 won to the greenback, down 1.2 won from Thursday’s close. It was the first decline in seven sessions, as weak U.S. housing data stoked an appetite for safe assets, dealers said.
(Yonhap News)
