Seoul stocks up for 4th day on eased Brexit unrest

Korean shares advanced for the fourth straight session Thursday as investors went for bargain hunting following pledges by authorities to support the markets reeling from the post-Brexit turmoil. The local currency rose against the U.S. dollar.

The benchmark Korea Composite Stock Price Index rose 13.99 points, or 0.72 percent, to 1,970.35. 

In moderate trade, 343.67 million shares worth 4.99 trillion won ($4.3 billion) traded hands on the main bourse, with 495 stocks advancing against 297 declining.

Investors positively responded to policy steps promised by central banks and governments to pump liquidity into financial markets to minimize market volatility following Britain's vote last week to exit the European Union, analysts said.

But they still remain cautious amid speculation that foreigners may scale down their risky assets unless the promised fiscal stimulus and monetary easing plans go as planned.

"While scooping up oversold stocks, investors will closely watch whether a set of policy measures will be in place in case of heightened volatility," NH Investment & Securities Co. analyst Lee Jun-hee said. 

On Tuesday, the Korean government said it will draw up a 20 trillion-won fiscal stimulus plan to cushion the fallout from the Brexit turmoil and support the country's economic growth. On the same day, the finance ministry cut its growth outlook to 2.8 percent for this year from its earlier forecast of 3.1 percent. 

Foreigners turned net buyers with a purchase of 244 billion won worth of local stocks from Wednesday to Thursday after offloading a total 755 billion won in the previous three sessions. Institutions sold a net 258 billion won on profit-taking. Major large-cap stocks advanced across the board. 

Among standout gainers, market bellwether Samsung Electronics Co. rose 2.08 percent to 1,425,000 won, the state-run Korea Electric Power Corp. climbed 0.50 percent to 60,400 won, and No. 2 chipmaker SK hynix Inc. was up 1.89 percent to 32,400 won.

In contrast, top automaker Hyundai Motor Co. fell 2.52 percent to 135,500 won, and top auto parts maker Hyundai Mobis Co. declined 2.51 percent to 252,000 won. 

The local currency closed at 1,151.80 won against the U.S. dollar, up 8.40 won from the previous session's close.

Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys rose 0.9 basis point to 1.247 percent and the return on the benchmark five-year government bond gained 1.3 basis points at 1.297 percent. (Yonhap)