Seoul shares gain 0.92 pct on bargain hunting

South Korean stocks closed 0.92 percent higher Tuesday, as investors sought after undervalued shares after the market's sharp decline in the previous trading sessions, analysts said. The local currency gained against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) added 18.18 points to close at 1,995.48. Trading volume was low at 242.5 million shares worth 3.17 trillion won ($2.96 billion) with gainers far outpacing losers 553 to 250.

Analysts said Seoul shares gathered ground as investors bought undervalued shares after the KOSPI closed lower for the sixth consecutive session Monday.

The index also closed at 1,984.87 Friday, marking the first time it closed below the psychologically significant level of 2,000 since Oct. 7.

"Tuesday's gain came in response to the market's recent decline, rather than an improvement in fundamentals," said Kang Hyun-gie, a researcher at I'M Investment & Securities Co. "The increase will only last for a short term."

China's policy-setting meeting, which kicked off Saturday through Tuesday, also lent support to the gain as it did not come up with measures to tighten its economy, unlike market watchers' earlier anticipation.

Overseas investors offloaded a net 3.02 billion won, extending their selling streak for the seventh consecutive session, with individuals also selling a net 40 billion won. Institutions, in contrast, scooped up a net 36 billion won.

Shipbuilders gathered ground on the back of an improved outlook over the industry, with Hyundai Heavy Industries adding 0.37 percent to 268,000 won and Samsung Heavy Industries rising 1.14 percent to 39,900 won.

Tech shares also closed higher, with market behemoth Samsung Electronics rising 1.96 percent to 1,456,000 won and top chipmaker SK hynix climbing 1.43 percent to 31,950 won. Flat panel maker LG Display gained 3.81 percent to 23,150 won.

Logistics closed bullish, with Hyundai Glovis rising 1.96 percent to 234,000 won and CJ Korea Express advancing 0.12 percent to 83,700 won. Hyundai Merchant Marine climbed 3.88 percent to 12,050 won.

The local currency ended at 1,071.40 won against the greenback, up 1.10 won from Monday's close, as exporters offloaded the greenback, dealers said. (Yonhap News)