Shares close higher after foreign buying spree

Shares closed slightly higher as foreign investors bought stocks after a two-day decline.

Screens in Hana Bank's trading room in central Seoul show the Kospi closing at 2,427.08 points on Thursday, up 0.23 percent, or 5.46 points, from the previous trading session. [YONHAP]

Shares ended slightly higher Thursday as foreign investors and institutions snapped them up following a two-day losing streak. The local currency rose against the dollar.

The Kospi rose 5.46 points, or 0.23 percent, to close at 2,427.08. The Kosdaq closed at 802.87, down 8.15 points, or 1 percent.

Trading volume was moderate at 388.8 million shares worth 7.13 trillion won ($5.44 billion). Losers, however, outnumbered gainers 444 to 432.

The Kospi remained in negative terrain during the morning session with mixed overnight results from Wall Street. After choppy trading, the benchmark index rebounded on institutional buying and as foreign investors, who unloaded shares earlier in the session, became net buyers.

“The local stock market appears to be in a mixed state of reactionary buying and a wait-and-see mode ahead of next week's scheduled announcement of the latest consumer price data in the United States,” said Choi Yoo-joon, an analyst at Shinhan Securities.

Key blue chip stocks ended with mixed results, with chip shares adding ground and battery makers suffering losses.

Samsung Electronics grew 0.57 percent to end at 70,300 won, and LG Energy Solution fell 1.94 percent to 429,000 won. SK hynix rose 0.31 percent to 128,000 won.

Samsung SDI dropped 2.33 percent to 439,500 won, and Posco Future M finished at 291,500 won, down 2.83 percent.

Refiners fared worse, with SK Innovation slumping 2.16 percent to 136,000 won, but air carriers advanced, with Korean Air soaring 4.09 percent to 21,650 won and Asiana Airlines rising 2.34 percent to 10,490 won.

Naver and Kakao also gained ground, rising 0.41 percent to 198,200 won and 3.75 percent to 45,600 won, respectively.

Posco Holdings rose 0.88 percent to 460,500 won.

The local currency ended at 1,310.10 won against the U.S. dollar, down 0.50 won from the previous session's close.

Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds fell 1.0 points to 3.856 percent, and the return on the benchmark U.S. 10-year government bonds dropped 7.1 points to 4.495 percent.

BY KIM JU-YEON, YONHAP [kim.juyeon2@joongang.co.kr]