Stocks on the local bourse ended flat after the market fluctuated throughout Wednesday on China’s latest gross domestic product report, analysts said.
The benchmark Korea Composite Stock Price Index ended at 1,992.21, up 0.06 point from Tuesday. Trading volume was light at 224 million shares worth 3.23 trillion won ($3.1 billion), with gainers leading losers 398 to 395.
The market started slightly higher on the back of tech gains but moved in a tight range in the morning session on news that the Chinese economy grew 7.4 percent on-year in the first quarter, beating market expectations of 7.3 percent.
“The local stocks traded higher on gains in the U.S. equity markets, but pared their earlier gains on woes over China’s data. However, following an announcement of China’s better-than-expected GDP, investors seemed to have been heartened by hopes of the country’s future stimulus,” said Eric Lee, an analyst at Daishin Securities.
“Although the GDP report was stronger than expected, there are still jitters over the economic slowdown of China,” he said.
Institutional investors sold their shares, but were offset by foreign buying of tech and auto shares.
Samsung Electronics was up 0.7 percent to 1,380,000 won and its rival LG Electronics gained 1.15 percent to 70,100 won. Samsung SDI, the world’s No. 1 maker of smartphone batteries, rose 2.57 percent to 159,500 won and LG Display, one of the country’s leading flat-panel makers, advanced 1.06 percent to 28,550 won.
Top automaker Hyundai Motor gained 1.68 percent to 242,000 won, but its sister company Kia Motors fell 0.84 percent to 59,000 won.
Institutional investors dumped shipbuilding shares. Hyundai Heavy Industries fell 0.24 percent to 208,000 won and Samsung Heavy Industries was down 0.96 percent to 30,850 won.
POSCO, the top steelmaker, tumbled 3 percent to 307,500 won on news that prosecutors raided its subsidiary POSCO Processing and Service over suspicion of corruption by some company officials. Ssangyong Motor, the local unit of Indian sport utility vehicle maker Mahindra & Mahindra, rose 12.44 percent to 11,750 won as foreign investors went on a buying spree.
LG Innotek rose 5.02 percent to 115,000 won on a positive outlook for its first-quarter earnings.
The local currency ended at 1,037.65 won, up 3.25 won against the U.S. dollar from Tuesday as exporters dumped their dollar holdings.
By Bae Hyun-jung and news reports (tellme@heraldcorp.com)
