South Korean stocks closed 0.12 percent higher on Wednesday, as investors stayed on the sidelines amid a lack of market momentum and concerns over the weak yen, analysts said. The local currency lost ground against the U.S.
dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) added 2.43 points to finish at 1,971.26. Trading volume was light at 238.6 million shares worth 3.63 trillion won (US$3.25 billion) with gainers outpacing decliners 510 to 301.
"The market showed little movement, with major blue-chip exporters taking a breather after the yen impact took a hit on them," said Bae Sung-young, an analyst at Hyundai Securities Co.
The Seoul bourse will likely be locked in rangebound trading as there are no fresh leads to drive stocks, possibly until the next earnings season, unless the yen gets volatile again, Bae added.
Foreigners and retail investors chose to reduce their holdings in local equities, with a net selling of 43.5 billion won and 49.1 billion won each. Institutions snapped up a net 96.4 billion won.
Large-cap shares finished mixed. Market behemoth Samsung Electronics closed flat at 1,500,000 won, with leading automaker Hyundai Motor sliding 0.26 percent to 193,000 won. But its smaller affiliate Kia Motors rose 0.37 percent to 54,700 won.
Financial issues ended the session in positive terrain, with Samsung Fire & Marine Insurance, a non-life insurer, soaring 2.95 percent to 226,500 won. No. 4 lender Shinhan Financial Group gained 1.33 percent to 38,050 won.
In contrast, telecom and retail companies finished bearish. Top mobile carrier SK Telecom dipped 2.46 percent to 218,000 won, and E-Mart, a discount store chain, slumped 4.29 percent to 201,000 won.
The local currency ended at 1,114.50 won against the greenback, down 7.9 won from Tuesday's close, mainly due to the foreign net selloff, dealers said.
Bond prices, which move inversely to yields, closed mixed. The yield on three-year Treasuries stayed unchanged at 2.56 percent and the return on the benchmark five-year government bonds edged up 0.01 percentage point to 2.65 percent.
