South Korean stocks ended nearly flat on Wednesday as investors sat on the sidelines following the stock split of No. 1 cosmetics maker AmorePacific, analysts said.
The South Korean won gained ground against the U.S dollar.
The benchmark Korea Composite Stock Price Index slipped 0.9 point to 2,143.89 after hitting an intra-day high of 2,161.23, the highest mark in nearly four years. Trading volume was high at
760.64 million shares worth 8.44 trillion won ($7.81 billion), with decliners beating gainers 580 to 230.
Analysts said the slight decline came as investors took a wait-and-see approach on the first day of the trade suspension of AmorePacific, which is in the process of a 10-for-1 stock split aimed at increasing the number of its outstanding shares.
“AmorePacific has been one of the most closely watched shares in recent months, so investors appear reluctant to trade due to the suspension of trading,” said Cho Ik-jae, an analyst at HI Investment & Securities Co.
The cosmetics maker, whose share price is the most expensive in the nation, announced earlier last month it would go ahead with its stock split plan, which could help further boost its share price on the back of an upbeat business outlook.
The suspension period, which began on Wednesday, will last until May 8, when trading is to resume at a new price, according to the bourse operator.
“However, there’s still a little more room left for the KOSPI to go up further down the road on the back of positive earnings reports of large firms,” Cho added.
Foreigners scooped up a net 708.87 billion won, and retail investors offloaded a net 275.15 billion won. Institutions chalked up a net sale of 418.03 billion won.
Tech shares closed mixed, with leading Samsung Electronics climbing 1.18 percent to 1,461,000 won, while flat screen provider LG Display remained unchanged at 30,650 won. No. 2 chipmaker SK hynix gained 0.22 percent to close at 45,250 won, while LG Electronics lost 0.17 percent to 59,200 won.
Autos also moved in different directions, as industry leader Hyundai Motor backtracked 0.58 percent to 170,000 won, whereas car parts maker Hyundai Mobis stepped up 0.63 percent to finish at 239,500 won. Hyundai’s corporate cousin, Kia Motors, slumped 0.63 percent to 47,600 won.
Top steelmaker POSCO, whose bottom line managed to return to the black in the first quarter of this year, plunged 3.36 percent to 244,500 won. Leading portal operator Naver, on the other hand, moved up 0.75 percent to end at 674,000 won.
LG Household & Health, which had closed higher on Tuesday on the back of positive first-quarter earnings results, slumped 4.18 percent to 894,000 won.
The local currency ended at 1,079.6 won against the greenback, up 3.8 won from Tuesday’s close. (Yonhap)
