Seoul shares rise 0.53 pct on exporter gains

South Korean stocks closed 0.53 percent higher Tuesday as local exporters rebounded from their recent losses sparked by concerns over the eurozone economy, analysts said. The local currency gained against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) rose

10.38 points to 1978.56. Trading volume was low at 313.3 million shares worth 3.62 trillion won (US$3.26 billion), with gainers outnumbering decliners 471 to 318.

"The increase came as the market recouped excessive losses made in the previous trading session following Cyprus's bailout," said Bae Sung-young, an analyst at Hyundai Securities Co. 

The International Monetary Fund and the eurozone countries agreed Saturday to provide a bailout worth 10 billion euros

(US$12.9 billion) to Cyprus in a bid to prevent the country from going bankrupt.

Foreigners offloaded a net 197.6 billion won worth of local shares. In contrast, institutions scooped up a net 107.5 billion won and retail investors purchased a net 66.2 billion won.

Blue chip exporters led the gain, with market behemoth Samsung Electronics advancing 2.08 percent to 1,475,000 won, and SK hynix increasing 0.88 percent to 28,650 won. Local carmaker Kia Motors added 0.74 percent to 54,400 won.

NHN, the operator of South Korea's most visited Web portal, soared 3.41 percent to 273,000 won on rosy prospects for game services on its mobile messenger LINE.

Samsung C&T, a South Korean trading and construction company, moved up 5.11 percent to 67,900 won on reports that it acquired a British gas and oil storage tank manufacturer Whessoe Projects.

Affiliates of Hanjin Group also gathered ground on reports that the group plans to become a holding company this year, with Hanjin Transportation rising 10.09 percent to 24,000 won.

In contrast, casino and ski resort operator Kangwon Land moved down 2.93 percent to 31,500 won as foreign investors offloaded its shares.

Brokerage houses also lost ground, with Samsung Securities falling 0.73 percent to 54,500 won and KDB Daewoo Securities losing

0.43 percent to 11,650 won. 

The local currency ended at 1,111.60 won to the U.S. dollar, up 3.00 won from Monday's close, as investors offloaded the greenbacks for profit taking, dealers said. (Yonhap News)