Seoul shares end tad higher; won at nearly 4-month low

Seoul shares closed slightly higher Friday on retail buying amid waning bets on the Federal Reserve's rate cuts. The Korean won fell to the lowest point in almost four months against the US dollar.

The benchmark Korea Composite Stock Price Index rose 2.24 points, or 0.09 percent, to 2,583.27. The main index has fallen 0.4 percent this week.

Trade volume was moderate at 454.58 million shares worth 10.14 trillion won ($7.3 billion), with losers outpacing gainers 617 to 258.

Institutions and individuals bought a combined 375 billion won worth of stocks, offsetting foreign selling valued at 388 billion won.

Large-cap stocks were mixed.

No. 2 chipmaker SK hynix Inc. rose 1.4 percent to 201,000 won, dominant tobacco company KT&G Corp. jumped 2 percent to 111,600 won, leading auto parts maker Hyundai Mobis Co. gained 2.6 percent to 256,500 won, and state-run Korea Gas Corp. was up 0.3 percent to 40,350 won.

Korea Zinc advanced 10 percent to 1,253,000 won as investors await the results of its share buyback that expired Wednesday in a dispute over the control of the world's biggest zinc smelter.

That level, well above the 890,000 won buyback offer, indicates that some investors expect there might be an even higher offer price as the battle for control escalates.

Korea Zinc has been in a takeover battle against private equity firm MBK Partners and Young Poong Corp., the smelter's largest shareholder.

In the tender offer that ended last week, Young Poong and MBK secured a 5.34 percent stake in Korea Zinc at 830,000 won apiece, bringing their overall stake to more than 38 percent.

Chairman Choi and his family own a total 15.6 percent stake in the zinc firm. Korea Zinc sees its friendly shares, including the Choi family's, reaching a 34-36 percent stake.

Korea Zinc looks set to announce its buyback results Monday.

Among decliners, market bellwether Samsung Electronics Co. fell 1.2 percent to 55,900 won, top carmaker Hyundai Motor Co. declined 1.3 percent to 225,500 won, state utility Korea Electric Power Corp. dropped 1 percent to 22,800 won, and leading cosmetics firm Amorepacific Corp. shed 5.3 percent to 117,300 won.

The won was trading at 1,388.70 won against the greenback at 3:30 p.m., the lowest since July 3, down 8.5 won from the previous session. (Yonhap)