Seoul shares close flat as investors take breather

Korean stocks closed almost flat on Thursday as investors stepped to the sidelines following a holiday and recent steep gains, analysts said. The local currency fell against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) inched up 0.95 points, or 0.05 percent, to 1,957.91. Trading volume was moderate at 426.1 million shares worth 4 trillion won ($3.5 billion), with gainers outnumbering decliners 433 to 390. The local financial market was closed Wednesday for Liberation Day.

"The KOSPI sharply gained in the past few sessions while overseas bourses were mostly rangebound," said Han Chi-hwan, an analyst at KDB Daewoo Securities Co., noting that the key index gained for seven of the past eight trading sessions.

"This prompted investors to take a breather. For now, there seems to be no factor that could seriously drive down the KOSPI," Han added.

Blue-chip exporters mostly lost ground, with automakers leading the fall. Top automaker Hyundai Motor lost 2.4 percent to 244,000 won and its smaller affiliate Kia Motors declined 2.04 percent to 76,900 won.

Kumho Tire, the country's No. 2 tire maker, tumbled 4.11 percent to 15,150 won on concerns over a general strike its unionized workers are staging for a wage hike.

Shares of Hanwha Group affiliates took a blow after its chairman Kim Seung-youn was sentenced to four years in prison for illegally using company money to pay back debts of firms he ran under borrowed names.

Hanwha Corp. slumped 2.59 percent to 30,100 won and Hanwha Securities lost 0.87 percent to 3,980 won. Hanwha Chemical fell 0.46 percent to 21,850 won.

Shares in water purifier maker Woongjin Coway rose 1.46 percent to 38,100 won after Woongjin Holdings announced it would sell the affiliate to private equity fund MBK Partners. Woongjin Holdings closed down 0.41 percent at 4,810 won.

The local currency ended at 1,134 won against the greenback, down 4.4 won from Tuesday's close, as investors opted for the U.S. dollar amid weakening hopes for a third round of quantitative easing, dealers said.

(Yonhap News)