A dealing room of Hana Bank in Seoul, Friday. Yonhap
South Korean stocks pared earlier losses to close nearly unchanged Friday on a growing appetite for autos and defense firms amid the ongoing Middle East crisis. The local currency fell against the U.S. dollar.
Starting 1.66 percent lower, the Korea Composite Stock Price Index (KOSPI) turned positive in the afternoon to close at 5,584.87, up 0.02 percent, or 0.97 point.
The index has suffered an extreme rout this week in the wake of the Middle East conflict, tumbling 7.24 percent and 12.06 percent Tuesday and Wednesday, respectively, before soaring 9.63 percent Thursday.
Trade volume was heavy at 1.2 billion shares worth 31.2 trillion won ($21.2 billion), with gainers beating decliners 524 to 360.
Individual investors purchased 2.9 trillion won worth of stocks, while foreigners and institutions sold a net 1.1 trillion won and 1.9 trillion won, respectively.
Analysts noted that the local financial market has been largely upset by geopolitical developments in the Middle East but still has some strong points that pushed up the index.
"It seems that the KOSPI experienced a readjustment following the previous session's 10 percent surge," said Lee Kyoung-min, an analyst from Daishin Securities. "The market has reflected massive volatility throughout this week, but bargain hunters supported the 5,500-point line."
Auto, defense and battery shares closed bullish.
Top carmaker Hyundai Motor rose 0.91 percent to 553,000 won, and its auto parts affiliate Hyundai Mobis gained 2.78 percent to 444,000 won.
Source: Korea Times News
