South Korean stocks closed nearly unchanged Thursday as jitters over Spain’s banking sector weighed down the market, analysts said. The local currency fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index edged down 0.08 percent, or 1.39 points, to 1,843.47. Trading volume was moderate at 439 million shares worth 4.55 trillion won ($3.84 billion), with losers outpacing gainers 446 to 384.
“The European Union’s troubles took a turn for the worse when Madrid tried to bolster one of its leading banks with an emergency injection of cash that was opposed by the continent’s central bank,” said Han Chi-hwan, an analyst at Daewoo Securities. “The move highlighted the difficult times facing Europe.”
Kwak Jung-bo, an analyst at Samsung Securities, said uncertainties will probably weigh down the global market until political deadlock in Greece is resolved. He added, however, expectations that the United States and China may opt to engage in economic stimulus programs remain valid, and are helping to sustain the market from sharp falls.
Big caps in electronics lost ground, along with chemicals, steel and heavy industries, although autos posted gains.
Market bellwether Samsung Electronics fell 1.22 percent to 1,211,000 won, while LG Electronics, a leading electronic appliance manufacturer, gave up 1.64 percent to 66,100 won.
LG Chem, a leading manufacturer of rechargeable batteries, lost 2.35 percent to 291,000 won, with top refiner SK Innovation declining 2.78 percent to 140,000 won.
Global steelmaker POSCO also gave up 0.14 percent to 362,000 won, with Hyundai Heavy Industries, the world’s largest shipmaker, losing 1.84 percent to 267,000 won.
Top automaker Hyundai Motor, however, added 0.41 percent to 244,000 won and No. 2 carmaker Kia Motors gained 2.77 percent to 80,200 won.
The local currency finished at 1,180.3 won to the U.S. greenback, down 4 won from Wednesday’s close, dealers said.
