Seoul shares inch higher after volatile trading

SEOUL, April 13 (Yonhap) -- South Korean stocks closed higher Monday after
swerving in and out of negative terrain as investors were cautiously optimistic
over the first-quarter earnings outlook, analysts said. The local currency rose
against the U.S. dollar.
After trading in a narrow range, the benchmark Korea Composite Stock Price Index
(KOSPI) advanced 2.22 points, or 0.17 percent, to close at 1,338.26. Volume was
heavy at 807.5 million shares worth 8.14 trillion won (US$6.12 billion), with
gainers outpacing losers 577 to 262.
"After foreign investors swung to net buyers of local stocks, retail investors
followed the move. On top of this, a stable currency market helped improve market
sentiment," said Kwak Joong-bo, an analyst at Hana Daetoo Securities Co.
The KOSPI got off to a weak start as investors remain concerned about the
first-quarter earnings outlook, but it reversed earlier losses after foreign
investors turned into net buyers of local stocks in the morning session.
Automakers gained ground with the news that the government will offer tax
benefits to local motorists who buy new vehicles to replace their old ones as
part of efforts to support the struggling auto industry.
Top carmaker Hyundai Motor Co. advanced 2.16 percent to 66,100 won and its
affiliate Kia Motors Co. jumped 4.75 percent to 10,150 won.
Telcom shares also advanced with the country's telecom giant KT gaining 1.69
percent to 39,000 and the largest mobile carrier SK Telecom Co. rising 3.22
percent to 192,500 won.
Financial shares were also among the gainers, with KB Financial advancing 2.49
percent to 39,100 won.
But some large-cap shares lost ground. Market leader Samsung Electronics Co. shed
3.32 percent to 583,000 won and POSCO fell 0.66 percent to 377,000 won.
The local currency ended at 1,329 won to the dollar, up 4 won from Friday's
close, as demand from offshore investors rose to buy local stocks, dealers said.
ygkim@yna.co.kr
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