SEOUL: South Korean shares were nearly flat in choppy trading as investors shied away from large bets due to uncertainties such as the coming presidential election and US fiscal concerns.
The Korea Composite Stock Price Index (KOSPI) ticked 0.1 percent lower at 1,993.13 points as of 0230 GMT Monday, boxed in a range after the main board rose 1.9 percent last week to nine-week highs following the US Federal Reserve's decision to keep buying assets.
"The main board is mostly treading water on concerns that US fiscal negotiations might not reach a partial resolution before year's end, while investors refrain from large bets before the presidential election," said Kim Soon-young, an analyst at IBK Securities.
Kim added retail investors' profit-taking was keeping the main index below the 2,000-mark.
South Korea's presidential elections on Wednesday are not expected to have a large effect on the main board this week, said Eugene Investment & Securities analyst Kwak Byung-ryeol, as the historically the market has been affected more by external factors than domestic politics.
Market heavyweight Samsung Electronics Co Ltd reversed earlier losses by rising 0.5 percent near mid-session, nearing last Thursday's record high of 1.533 million a per share.
Auto shares lost ground, with Hyundai Motor falling 2.4 percent while sibling Kia Motors slid 4.1 percent.
Concerns have increased over how the weakening yen would lend a competitive edge to Japanese rivals of South Korean automakers following Sunday's landslide win by Japan's conservative Liberal Democratic Party, which favours aggressive monetary easing.
But food manufacturers gained, with CJ Cheiljedang Corp rising 3.6 percent. A spokeswoman for the country's largest food processor said it intends to raise food prices after the presidential election. Other food makers are expected to follow suit.
Declining shares outnumbered winners 439 to 328 around mid-session
The KOSPI 200 benchmark of core stocks was down 0.1 percent, while the junior KOSDAQ edged 0.3 percent lower.
Center>Copyright Reuters, 2012
Comments
Comments are closed.