SEOUL: South Korean stocks ended almost flat on Wednesday amid concerns that China, the world’s No. 2 economy, may face a hard landing. The local currency lost ground against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) inched up 0.99 point, or 0.05 percent, to 1,915.22. Trading volume was moderate at 337.04 million shares worth 4.96 trillion won (US$4.2 billion), with decliners beating gainers 446 to 352.
Analysts said that investors remained hesitant to pick up risky assets following weaker-than-expected data from China, but the local stock market has priced in signs of slowing growth in the world’s No. 2 economy.
“It wasn’t an unpredictable situation,” said Kim Hyung-ryeol, an analyst at Kyobo Securities Co., referring to China’s August purchasing managers’ index (PMI), which hit a three-year low of 49.7.
“The local stock market probably hit its trough in August, and the market’s volatility now seems to be easing,” Kim added.
Foreigners dumped a net 86.52 billion won worth of local shares, and retail investors sold off a net 30.83 billion won. Institutions bought more shares than they sold at 64.81 billion won.
Large cap shares traded mixed. Tech behemoth Samsung Electronics climbed 0.46 percent to 1,090,000 won, whereas top chipmaker SK hynix stepped down 0.15 percent to 34,350 won.
Autos closed higher, with industry leader Hyundai Motor surging 3.41 percent to 151,500 won and its sister affiliate, Kia Motors, jumping 3.23 percent to 49,600 won. Auto parts maker Hyundai Mobis also added 1.97 percent to 207,000 won.
Cheil Industries, the new merged entity of two key units of Samsung Group, gained 2.06 percent to end at 173,500 won.
State-run utility firm Korea Electric Power Corp. shed 1.75 percent to 47,650 won, and top portal operator Naver also withdrew 2.1 percent to end at 466,000 won. Cosmetics giant AmorePacific slipped 0.41 percent to 362,000 won.
