South Korean stocks gained 0.26 percent Thursday on a modest technical rebound from the previous session’s tumble triggered by mounting Greek and eurozone woes, analysts said. The local currency rose against the U.S. dollar.
The benchmark Korea Composite Stock Price Index picked up 4.71 points to 1,845.24, after falling for six straight sessions. Trading volume was light at 434 million shares worth 5.58 trillion won ($4.78 billion), with gainers outpacing losers 449 to 382.
“The bourse recovered because investors felt Wednesday’s 58.43-point fall was excessive,” said Lim Soo-kyun, an analyst at Samsung Securities Co.
He said that since there is no quick solution to Greece’s debt impasse for the time being, the market will likely remain choppy with no clear direction.
Others said some bargain hunting for big cap shares helped buoy stocks, with investors also hopeful Washington may implement quantitative easing in a bid to stimulate the world’s largest economy.
Lim Dol-yi, an analyst at Solomon Investment & Securities, said the KOSPI is being swayed by global developments that have nothing to do with the performance of local companies.
He said despite the rebound, conditions facing Europe are not bright and will effectively limit any future gains.
Many shares that lost ground in the previous session made a comeback, with chemicals, oil refining and heavy industries leading the gain.
LG Chem, a leading manufacturer of rechargeable batteries, jumped 5.62 percent to 282,000 won, and top refiner SK Innovation soared 6.27 percent to 144,000 won.
S-Oil Corp. gained 4.01 percent to 96,000 won, with public power monopoly Korea Electric Power Corp. moving up 3.14 percent to 23,000 won.
Hyundai Heavy Industries, the world’s largest shipmaker, shot up 3.59 percent to 260,000 won, with top automaker Hyundai Motor remaining flat at 240,500.
Market bellwether Samsung Electronics lost 0.57 percent to 1,223,000 won, and leading steelmaker POSCO also sank 1.07 percent to 368,500 won.
The local currency finished at 1,162.9 won to the U.S. greenback, up 2.8 won from Wednesday’s close, dealers said.
