Seoul shares closed nearly flat on Thursday after a rangebound session, with investors consolidating gains following a rally to a 7-month high the day before, and as concerns on demand in China stifled appetite for stocks. The Korea Composite Stock Price Index (KOSPI) inched down 0.06 percent to close at 2,043.76 points, drifting slightly from a seven-month closing peak set on Wednesday.
"There isn't a whole lot of momentum going forward, especially with lingering caution over oil prices and a weak yen, as well as Wen's rather downbeat note on the Chinese economy," said Rhoo Yong-suk, an analyst at Hyundai Securities. LG Display shares outperformed sector peers and rose 3.53 percent, bolstered by the US-Korea free trade deal that took effect on Thursday, giving LCD monitors immediate duty free treatment.
Automotive components are also subject to zero tariffs effective immediately under the free trade deal, rather than incremental reductions for other sectors, helping auto-parts maker Hyundai Mobis climb 1.03 percent for a third day of gains. The benchmark KOSPI 200 index inched down 0.03 percent and the junior, tech-heavy KOSDAQ fell 0.1 percent. The broad KOSPI index has risen nearly 12 percent this year, but analysts view the 2,050 level as a short-term ceiling and see constrained, rangebound movements persisting until first-quarter earnings provide further guidance.
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