South Korean stocks closed higher Wednesday as foreign investors turned net buyers on growing hopes for a breakthrough in meetings between Greece and its European creditors over a revision of its bailout package, analysts said. The local currency weakened against the U.S. dollar.
The benchmark Korea Composite Stock Price Index scored 9.84 points, or 0.51 percent, to finish at 1,945.70. Trading volume was light at 296.67 million shares worth 4.13 trillion won ($3.76 billion), with gainers surpassing decliners 508 to 305.
Analysts said foreign-led buying boosted the local market as Greece is seeking to renegotiate its massive bailout deal at an emergency meeting of eurozone finance ministers later in the day.
The talks come after Greek Prime Minister Alexis Tsipras on Sunday said he would not bow to German demands that his hard-left government first complete a pending loan agreement with the EU and the International Monetary Fund.
“Eased concerns over Greece’s exit from the eurozone revived demand for risky assets in the global market, which also positively affected the local equity market,” Kwak Byung-ryol, a strategist at Hyundai Securities, said. “However, the impact will be short-lived. Investors will be taking a wait-and-see approach until making a big bet on risky assets.”
Market heavyweights traded bullish, with 17 of the top 20 rising from the previous session.
Tech shares were mixed. Market bellwether Samsung Electronics declined 1.67 percent to 1,355,000 won, and SK hynix, the world’s second-largest chip maker, gained 3.77 percent to 46,850 won.
Naver, the nation’s No. 1 portal operator, rose 3.86 percent to 673,000 won on bargain hunting after it suffered deep losses in the previous sessions.
State-run electricity provider Korea Electric Power Corp. went up 2.23 percent to 43,500 won on strong earnings, which were released before the market closing. SK Telecom, the biggest carrier, advanced 2.37 percent to 280,500 won.
The Korean won ended at 1,097.70 won against the greenback, down 8.0 won from Tuesday’s close.
Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys lost 0.5 basis point to 2.051 percent and the return on the benchmark five-year government bonds shed 0.7 basis point to 2.149 percent. (Yonhap)
