South Korean stocks closed effectively unchanged Tuesday as troubles in Spain’s bonds market offset Greece’s upbeat election results, analysts said. The local currency gained against the U.S. dollar.
The benchmark Korea Composite Stock Price Index edged up 0.06 points to close at 1,891.77. Trading volume was light at 362 million shares worth 3.44 trillion won ($2.97 billion), with losers outpacing gainers 440 to 371.
“Spain’s surging borrowing costs clearly showed that relief over Greece’s election results has not significantly eased problems facing the eurozone as a whole,” said Lee Sang-jae, a senior economist at Hyundai Securities.
Lee said Spain’s state debts, which surpassed the 7 percent mark, indicated the country’s current situation will take concerted efforts by the European Union to resolve.
Kwak Jung-bo, an analyst at Samsung Securities, said the easing of Greece’s uncertainties with the victory of pro-austerity parties in Sunday’s polls helped relieve some concerns facing the monetary union and kept the local bourse from falling.
He warned, however, that it is too early to say if there will be an upward swing in the market.
Big-cap shares in electronics and autos moved up, while steel, heavy industry and chemicals suffered losses.
Market bellwether Samsung Electronics gained 0.08 percent to 1,244,000 won, with leading carmaker Hyundai Motor rising 2.01 percent to reach 253,500 won.
Top auto parts maker Hyundai Mobis rose 1.44 percent to 282,000 won, and memory chip giant SK hynix moved up 1.06 percent to 23,850 won.
Global steelmaker POSCO, however, lost 0.26 percent to 379,500 won, and LG Chem, a leading manufacturer of rechargeable batteries, surrendered 1.52 percent to 291,500 won.
Hyundai Heavy Industries, the world’s largest shipmaker, closed lower at 279,500 won, a loss of 0.18 percent from the previous session, with top refiner SK Innovation falling 1.66 percent to 148,000 won.
The local currency finished at 1,156.3 won to the U.S. greenback, up 0.8 won from Monday’s close.
