Seoul shares gained on Friday, with foreign buying resuming following positive US data, but posted their first weekly loss this year. The Korea Composite Stock Price Index (KOSPI) ended up 0.6 percent at 2,019.89 points, reversing losses earlier in the day. But the KOSPI fell 0.18 percent this week, their first weekly decline since the last week of December.
"The KOSPI took a breather this week after it had been rising since early January," said Kim Joo-hyung, chief strategist at Tong Yang Securities. "US data was better than expected, signalling that economic momentum is improving. Shares may extend gains next week," he said. The number of Americans filing new claims for jobless benefits last week held at the lowest level since the early days of the 2007-2009 recession, while US home prices rose 0.7 percent in December from November.
But Brent crude rose for a fourth day, hitting a fresh nine-month high and a record in euro terms on Thursday, creating renewed concerns for cash-strapped Europe on heightened tensions between Iran and the West. Foreign investors resumed buying, snapping up 161.3 billion Korean won ($142.88 million) worth of shares. The KOSPI briefly fell below the 2,000-point level for the first time since February 16.
"High oil prices burdened shares, especially after the KOSPI reached above the 2,000-point level," Kim Hak-kyun, an analyst at Daewoo Securities, said. Shares in Kia Motors were down 0.28 percent, while Hyundai Mobis lost 1.08 percent. Banks and securities firms were relatively firm, with Hana Financial up 2.64 percent and Mirae Asset Securities rising 3.49 percent. The junior Kosdaq market finished up 0.56 percent at 544.14.
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