SEOUL: South Korean stocks closed higher Wednesday as investors scooped up steelmakers and some tech stocks on expectations that their earnings have bottomed out, analysts said. The South Korean won fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index soared 3.61 points, or 0.18 percent, to 2,042.97. Trading volume was moderate at 660.79 million shares worth 5.09 trillion won ($4.49 billion), with losers outnumbering gainers 455 to 348.
Analysts said the market sentiment remains positive ahead of key economic events in the United States, Europe and Japan, while investors were responding selectively to corporate earnings results.
The European Central Bank’s policy meeting is due on Thursday, and markets expect it to hint at additional fiscal measures to boost inflation.
“The overall market doesn’t show a certain trend, while investors are selling overpriced stocks to lock in profits and buying stocks with good news from earnings reports,” said Kim Dae-jun, an analyst at Korea Investment & Securities.
“Investors are hesitant to make big bets right now, taking a wait-and-see approach during the third-quarter earnings season.”
Institutions bought a net 65.31 billion won, while foreigners and retail investors offloaded a net 20.8 billion won and 82.98 billion won, respectively.
