Korean stocks closed 0.02 percent lower on Wednesday as investors turned gun-shy following the previous session’s rally, analysts said. The local currency gathered ground against the U.S. dollar.
The benchmark Korea Composite Stock Price Index fell 0.35 points to 1,892.39, after jumping 1.8 percent on Tuesday.
Trading volume was moderate at 421.6 million shares worth 5.95 trillion won ($5.21 billion), with losers outnumbering gainers 461 to 362.
“It seems the KOSPI is testing technical resistance as the index is approaching the 1,900-level,” said Cho Byung-hyun, an analyst at Tong Yang Securities Inc.
“Other market indicators are not bad at the moment and foreigners are continuing to buy amid easing fears over eurozone woes and China’s economic growth,” he said, citing France and Spain’s successful debt sales and positive economic data from Germany and the U.S.
Foreigners snapped up shares worth 479 billion won, extending their buying streak to a seventh straight session.
Cho, however, said investor sentiment is likely to sour later this week when policy issues over the eurozone debt crisis resurface.
Large caps closed mixed. Automakers ended in negative territory with industry leader Hyundai Motor losing 2.16 percent to 226,000 won and its affiliate Kia Motors falling 2.91 percent to 66,800 won.
Techs were also among decliners, with Samsung Electronics shedding 0.58 percent to 1,030,000 won following news that Apple Inc. filed an additional lawsuit against the tech behemoth in Germany, demanding a sales ban on Samsung smartphones.
Shipbuilders, however, bucked the fall, with No. 1 shipbuilder Hyundai Heavy Industries gaining 3.19 percent to 307,000 won.
Smaller player Samsung Heavy Industries rose 1.77 percent to 34,450 won.
“Despite concerns over the shipbuilding industry, the outlook for Hyundai Heavy is not bad, given its order goal of $9.1 billion, up 21.3 percent from the previous year,” said Woori Investment & Securities Co. in a note.
Daewoo International jumped 3.12 percent to 29,700 won after posting record profits last year. The trading firm, which released the results after Tuesday’s market close, said its revenue jumped more than six-fold in 2011.
The local currency ended at 1,141.8 won against the greenback, up 3.7 won from Tuesday’s close, as foreigners snapped up the won to invest in South Korean equities, dealers said.
