Seoul shares end higher on Oct. 12

[THE INVESTOR] South Korean shares closed slightly higher on Oct. 12 as institutions increased their buying spree.

The local currency lost ground against the US dollar for a second straight session.

The benchmark KOSPI added 1.80 points, or 0.09 percent, to 2,033.73. Trading volume was slim at 292.4 million 4.68 trillion won (US$4.16 billion), with gainers outnumbering losers 406 to 377.

Institutions purchased a net 619.2 billion won while foreign investors offloaded a net 550.2 billion won, extending their selling streak to a third consecutive session. Retail investors sold a net 68.9 billion won.

Market bellwether Samsung Electronics slipped 0.65 percent to 1,535,000 won, following an 8.04 percent plunge in the previous session that marked the steepest drop in nearly eight years.

Such a sharp drop came after the company said it will halt global sales of its latest Galaxy Note 7 smartphone over battery-related problems.

Despite an earlier global recall of the Galaxy Note 7 over problems with its battery, Samsung Electronics shares surged to a record high of 1,706,000 won on Oct. 7.

Other large caps ended mixed.

Samsung C&T, a construction unit and de facto holding firm of Samsung Group, spiked 3.86 percent to 161,500 won, while industry leader Hyundai Motor added 1.49 percent to 136,500 won.

Top mobile communications firm SK Telecom retreated 0.23 percent to 219,000 won, while global steelmaker POSCO advanced 0.43 percent to 234,500 won.

The local currency closed at 1,123.60 won against the US dollar, down 3.20 won from the previous session’s close.

Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys slipped 2.0 basis points to 1.353 percent and the return on the benchmark five-year government bond lost 2.1 basis points to 1.416 percent.

(theinvestor@heraldcorp.com)