Seoul stocks closed 0.09 pct up on auto rallies

SEOUL, Feb. 4 (Yonhap) -- South Korean stocks closed 0.09 percent higher Thursday
as automaker gains narrowly offset falls stemming from heavy institutional
sell-offs, analysts said. The local currency lost ground against the U.S. dollar.
After range-bound trading, the Korea Composite Stock Price Index (KOSPI) added
1.4 points to finish at 1,616.42. Volume was moderate at 392.6 million shares,
worth 4 trillion won (US$3.5 billion), with losers outnumbering gainers 391 to
378.
"Relentless institutional selling combined with tepid foreign buying left the
market with only narrow gains despite the fact that concerns like U.S. bank
regulations and Chinese credit tightening subsided," said Rhyu Yong-Seok, an
analyst at Hyundai Securities.
"Fund managers and foreigners seem to be readjusting their portfolios to take
into account expected slowdowns in the economy," Rhyu said.
Automakers spearheaded the market gain as investors bet local firms would take a
larger share of the U.S. market from No. 2 Toyota Motor because of the Japanese
carmaker's recalls for faulty accelerator pedals.
"Toyota's recall issues completely diluted concerns that a strengthening local
currency would drive down (South Korean carmakers') U.S. market share," said Lee
Sok-je, an analyst at Mirae Asset Securities.
Hyundai Motor, South Korea' biggest carmaker, rose 3.57 percent to 116,000 won
and smaller affiliate Kia Motors jumped 2.93 percent to settle at 21,100 won.
Top auto-parts maker and Hyundai Motor affiliate Hyundai Mobis also gained 2.72
percent to 151,000 won.
Korea Electric Power, or KEPCO, surged 4.22 percent to 39,500 won on expectations
that its profitability will gain on falling fuel costs and declining import
expenses, due to the strengthening local currency. Hopes of more nuclear power
plant exports also added to optimism.
Hynix Semiconductor, the second largest chipmaker after Samsung Electronics, also
advanced 2.11 percent to 21,750 won as investors hunted for bargains following
steep losses in the last two sessions. On Monday, creditors-turned-shareholders
of the firm extended the bidding deadline for a controlling share in the chip
manufacturer after receiving no applications to take over the stake.
Shinhan Bank, the parent company for No. 3 lender Shinhan Bank, closed up 0.12
percent at 43,250 won before the lender's earnings report released after the
market closed.
But KB Financial Group, parent of top lender Kookmin Bank, slid 3.26 percent to
50,400 won ahead of its fourth-quarter earnings report. The company is to
announce results on Wednesday next week.
The local currency ended at 1,150.90 won to the greenback, down 1.90 won from
Wednesday's close.
pbr@yna.co.kr
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