Seoul shares post fresh historical high

Seoul shares posted a fresh historical closing high on Thursday after volatile trade, despite concerns of a selloff with options expiry on the day. The Korea Composite Stock Price Index finished up 0.9 percent at 2,141.06 points. The KOSPI 200 June futures rose 0.75 points to 282.65 and the KOSPI 200 spot index climbed 2.47 points to 283.15. The junior Kosdaq market ended up 0.52 percent at 531.47.
The KOSPI also reversed early losses to post a new intra-day high, with auto shares powering ahead. Individuals were buyers of a net 126.5 billion won ($116.4 million) worth of shares, offsetting foreign and institutional selling. Automakers rose for a second session on hopes they would gain market share at the expense of Japanese rivals suffering from production disruptions following Japan's March 11 earthquake.
Ahn Sang-jun, an analyst at Tong Yang Securities, expected South Korean carmakers to post record-high profits in the April to June period on disruptions in Japan and seasonal demand. Shares in Hyundai Motor climbed 4.47 percent, while Kia Motors gained 2.45 percent.
Tyre shares continued their rallies on expectations of product price rises and lower rubber costs. Hankook Tire jumped 5.83 percent, while Nexen Tire soared 4.09 percent. Chipmakers were mixed, with Hynix Semiconductor jumping 4.33 percent but Samsung Electronics losing 0.11 percent.
"The chip outlook is positive, but handsets and LCDs are not faring well. Samsung is losing ground to Apple in smartphones and tablet PCs. Demand for computers and TVs is not good either," Lee Seon-yeob, an analyst at Shinhan Investment Corp, said. Builders lost ground on growing concerns about the health of the sector after mid-sized Sambu Construction said on Wednesday that it filed for court receivership.
Hanhwa Corp, the parent firm of unlisted Hanhwa Engineering & Construction, dove 7.05 percent after a media report that the builder may suffer a fallout from Sambu crisis. Banks lost ground, with Hana Financial Group sliding 1.29 percent, while KB Financial Group declined 1.94 percent. "Bank issues are falling because of institutional selling, the interest rate freeze on Tuesday, and provisions related to loans to builders," Lee Seung-jun, an analyst at HMC Investment Securities, said.
Telecom shares extended losses, weighed down by mounting pressure to reduce mobile tariffs. South Korea's telecom regulator is considering introducing free text messaging services in a bid to help cut tariffs, according to media reports. Shippers weakened after US crude oil prices rebounded on Wednesday.