SEOUL: Seoul shares traded higher on Tuesday after a three-session losing streak, as institutions snapped up auto and energy stocks whose losses recently sent the index into freefall.
The Korea Composite Stock Price Index (KOSPI) rose 1.6 percent at 1,738.13 points as of 0157 GMT.
Institutional investors continued buying into a second session, purchasing a net 122.5 billion won ($113 million) worth of stocks.
But foreign investors were poised to sell for a fifth consecutive session, offloading a net 49.8 billion won worth of stocks.
"Today's gain is likely a technical rebound, with the lack political momentum from the United States and Europe on resolutions to their economic issues leaving investors with little conviction," said Han Chi-hwan, a market analyst at Daewoo Securities.
The country's top automaker Hyundai Motor soared 6.8 percent, recovering some of the losses racked up in the last four sessions. Its affiliate Kia Motors , the country's No.2, also gained 3.6 percent.
Energy plays rebounded after taking a sustained hit on fears over global economic growth.
SK Innovation which owns the country's top refiner, spiked 7.2 percent and S-Oil Corp , the country's No.3 crude oil refiner, jumped 5.8 percent.
Builders helped lift the market amid growing hopes the civil war in Libya may be drawing to a close and work on projects in the country could resume.
Hyundai Engineering & Construction advanced 5.3 percent and Daewoo Engineering & Construction surged 6.5 percent.
The turmoil in Libya disrupted South Korean firms' construction projects and led them to evacuate thousands of workers.
"If the overthrow of (Libyan leader Muammar) Gaddafi finally happens, the post-Gaddafi regime will need to build new roads and houses, which could boost infrastructure demand for Korean firms," said SK Securities analyst Park Hyung-ryul.
Copyright Reuters, 2011
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