SEOUL: South Korean stocks traded nearly flat late Friday morning as institutions dumped local shares on rising speculation that the U.S. Federal Reserve may raise its key interest rate this year, analysts said.
The benchmark Korea Composite Stock Price Index (KOSPI) inched down 0.42 point, or 0.02 percent, to 2,033.74 as of 11:20 a.m.
Market kingpin Samsung Electronics surged 3.7 percent after the company on Thursday announced plans to buy back its own shares worth a total of 11.3 trillion won (US$10 billion) to boost shareholder value.
Lotte Chemical tumbled 9.68 percent after the company said it reached a deal to buy Samsung Group’s chemical businesses for nearly 3 trillion won. The deal includes a 31.5 percent stake in Samsung Fine Chemicals and 90 percent of Samsung SDI Co.’s chemical unit.
Samsung SDI, which rose as much as 5 percent following the news, pared earlier gains to retreat 5.41 percent. The company said it plans to invest over 2 trillion won in the electric car battery division. Samsung Fine Chemicals plunged 8.73 percent.
The stake sale is Samsung’s latest reshuffling effort after the company last year sold stakes in four affiliates in the defense and chemical sectors to Hanwha Group, while it is Lotte’s biggest takeover deal ever.
The local currency was changing hands at 1,138.5 won against the greenback as of 11:20 a.m., up 3.8 won from Thursday’s close.
