South Korean stocks reversed early morning losses to close up 0.67 percent on Thursday, as institutions snapped up battered stocks following a plunge in the previous session, analysts said. The local currency slumped against the U.S. dollar.
The benchmark KOSPI rose 11.96 points to 1,795.06. Trading volume was moderate at 275.6 million shares worth 4.08 trillion won ($3.52 billion), with gainers slightly outnumbering decliners 432 to 412.
“Institutions went hunting for bargains after the KOSPI dropped more than 2 percent on Wednesday,” said Park Sung-hun, an analyst at Woori Investment & Securities Co.
Institutions snapped a net 363.1 billion won worth of shares, but foreigners dumped 271.1 billion won worth of shares, extending their selling streak to a sixth straight session.
“Meanwhile, hopes on eurozone policy efforts, such as a summit between France, Germany and Italy as well as the eurobond issuance plan also gave a positive boost to investor sentiment,” Park said.
Large caps closed mixed, but market bellwether Samsung Electronics gained 0.86 percent to 943,000 won.
Top steelmaker POSCO also advanced 1.41 percent to 360,000 won after striking a deal with Google Inc. to introduce a “smart” work system as well as an automated logistics management tool.
Domestic-focused shares rallied, with leading mobile carrier SK Telecom adding 3.69 percent to 154,500 won and No. 1 discount chain operator E-mart jumping 5.72 percent to 305,000 won.
YG Entertainment, which made its trading debut on Wednesday, shot up to its daily limit for the second straight session to settle at 89,900 won.
In contrast, Kolon Industries plunged 12.64 percent to 60,800 won after a U.S. district court ruled that the company must pay
US$919.9 million for breaching trade secrets.
Hi Mart, the country’s largest electronics appliance retailer, dived 12.76 percent to 75,900 won amid an ongoing management feud between its current chief and major shareholder.
The local currency ended at 1,158.5 won against the greenback, down 6.5 won from the previous close, as investors’ appetite for safe-haven assets surged following Germany’s poor bond auction sales, dealers said.
