South Korean stocks finished slightly higher Monday with institutions going on a buying spree as foreign and individual investors dumped local shares to lock in recent gains, amid growing geopolitical tensions caused by North Korea's intercontinental ballistic missile launch, analysts said. The Korean won rose against the US dollar.
The benchmark Korea Composite Stock Price Index edged up 1.72 points, or 0.07 percent, to close at 2,402.71. Trade volume was modest at 273.94 million shares worth 5.6 trillion won ($5.1 billion), with losers outnumbering gainers 504 to 301.
Foreigners and individuals offloaded a net 25.3 billion won and 26 billion won worth of local stocks, respectively, a move seen as capitalizing on recent gains, analysts said. Meanwhile, institutions were net buyers by snatching up a net 48.4 billion won worth of shares more than they sold.
The local stock market had opened lower following late last week losses on Wall Street. On Friday (local time), the US stocks declined due to poorer-than-expected earnings results by Amazon and other big companies that underwhelmed investors.
"The KOSPI is forecast to face some downward pressure despite modest gains as it tumbled on Friday and investors keep close tabs on North Korea," said Lee Kyung-min, an analyst at Daeshin Investment & Securities.
Most large caps were mixed, with tech shares leading the gain.
Top cap Samsung Electronics added 0.92 percent to end at 2,410,000 won, following a huge loss during the previous session. SK hynix, a major chipmaker, moved up 2.17 percent to 66,000 won per share.
Stocks of Kakao, operator of Korea's dominant messaging app KakaoTalk, jumped 8.11 percent to hit a record high of 120,000 won on the back huge popularity of Kakao Bank. Kakao Bank, South Korea's second Internet-only bank, said earlier that it has attracted some 800,000 accounts just four days after its launch.
Top automaker Hyundai Motor, meanwhile, shed 3.01 percent to 145,000 won, and its affiliate Hyundai Mobis, an auto parts maker, dropped 3.72 percent to 246,000 won.
The local currency closed at 1,119 won against the greenback, up 3.1 won from Friday's close.
Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys rose 01. basis point to 1.724 percent, and the return on the benchmark five-year government bond gained 0.4 basis point to 1.926 percent. (Yonhap)
