South Korean stocks inched 0.23 percent up on Wednesday as European optimism boosted investor sentiment but they contined to remain cautious about the region’s worsening debt crisis, analysts said. The local currency rose against the U.S. dollar.
The benchmark Korea Composite Stock Price Index rose 4.39 points to 1,907.53. Trading volume was moderate at 414.3 million shares worth 5.47 trillion won ($4.9 billion), with losers leading gainers 416 to 395.
“The prices were steady all day, just up and down less than one percent. There’s no big momentum to push the index upward,” said Kim Sung-bong, an analyst at Samsung Securities Co. “European issues have already priced into the market. The Italian prime minister’s resignation offer did not affect the market. Investors are now waiting for Italy’s austerity plans.”
He said the index would likely move in a narrow range around the 1,900 point level for a while until more influential factors such as U.S. economic data showing signs of recovery are seen.
The KOSPI started higher, boosted by a drop in South Korea’s jobless rate of 2.9 percent in October from a month earlier. The economy also gained 501,000 more jobs last month than a year earlier, in the largest on-year job creation since May 2010.
Foreigners became net sellers, selling a net 18.5 billion won worth of shares, while institutions offloaded 279.5 billion won.
Tech firms closed mixed, with the world’s largest chipmaker Samsung Electronics rebounding 1.55 percent to 985,000 won, following a two-session drop after hitting the 1-million won mark last week. Its smaller rival LG Electronics fell 1.25 percent to finish at 63,200 won.
Steelmakers and shipyards staged a bullish run, with market leaders POSCO gaining 0.79 percent to 383,500 won and Hyundai Heavy Industries advancing 0.53 percent to 283,500 won.
SK Telecom, South Korea’s largest mobile carrier, rose 0.99 percent to close at 153,000 won, on speculation that it would withdraw a bid for Hynix Semiconductor amid prosecution investigation into its owner’s misappropriation allegations. In contrast, Hynix, the world’s second-biggest memory chip producer, fell 4.13 percent to 22,050 won.
Shares of Hankook Tire tumbled 8.36 percent to 42,750 won after France-based Michelin said it had sold its stake in this country’s biggest tiremaker at a discount price.
The local currency closed at 1,117.4 won to the greenback, up 3.6 won from Tuesday’s close, as waning worries over the eurozone debt crisis stoked investor appetite for riskier assets, dealers said.
