Seoul shares end nearly flat on rebounding won

By Lee Youkyung
SEOUL, Dec. 18 (Yonahp) -- South Korean stocks closed nearly unmoved Friday as a
rebounding local currency boosted investor sentiment after early morning jitters
fueled by a soaring dollar and overnight setbacks on Wall Street, analysts said.
The benchmark Korea Composite Stock Price Index (KOSPI) inched down 0.8 point, or
0.05 percent, to 1,647.04. Volume was thin at 258 million shares worth 3.88
trillion won (US$3.3 billion) with losers leading gainers 381 to 379.
"The local currency rebounded in afternoon trading, easing concerns about the
foreign exchange market and lending support to the benchmark," said Hwang
Keum-dan, an analyst at Samsung Securities. "In early morning trade, investor
sentiment was dented by the dollar's rebound, which they feared could spark
sell-offs among foreign investors."
The key index retreated as much as 0.96 percent in early trading but recouped
most of its losses.
Financial stocks finished lower as an earnings forecast reduction for top U.S.
financial services firms dealt a blow to their counterparts on the Seoul bourse.
Top financial services firm KB Financial Group fell 2.96 percent to 59,000 won
while its rival Woori Financial Holding sank 3.92 percent to 14,700 won.
Commodity producers suffered from the dollar's rebound, which is expected to
drive commodity prices lower. Korea Zinc, the world's second-largest zinc
smelter, fell 1.71 percent to 201,500 won.
Ssangyong Motor, which escaped liquidation after winning court approval for its
rescue plan Thursday, tumbled by the daily limit of 14.9 percent to 3,455 won, as
more than 10 percent of the automaker's capital will be cut.
The technology sector, however, lent support to the bourse with market leader
Samsung Electronics rising 1.05 percent to 773,000 won. Hynix Semiconductor, the
world's second-largest memory chipmaker, also climbed 2.61 percent to 21,650
won.
The local currency closed at 1,176.20 won to the greenback, up 1.70 won from
Thursday's close and reversing earlier declines as offshore investors unloaded
the U.S. dollar, dealers said.
ylee@yna.co.kr
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