South Korean shares ended slightly higher on Wednesday, lifted by a near five percent rise in shares of SK Telecom after the resignation of top management sparked hopes for greater transparency across the SK Group.
Market participants said sentiment was also helped by growing optimism about significant progress in talks on North Korea's nuclear weapons programmes. The six-way talks began in Beijing on Wednesday.
The benchmark Korea Composite Stock Price Index (KOSPI) finished up 0.26 percent at 866.87 points, bouncing back above its 20-day moving average of 865.14.
"Speculation that North Korea was likely to spring a surprise by announcing an end to its nuclear programme circulated in the market," said a stock trader at Mirae Asset Securities.
"If it turns out to be true, it would lower the long-standing geopolitical risks of Korea."
However, persistent foreign selling and worries over an unexpected dip in US consumer confidence data put a lid on the market's rebound.
"The market ended higher largely as a result of a technical rebound after yesterday's near 1.5 percent fall, but the overall mood is still leaning towards an extended correction," said Cho Duk-hyun, an analyst at Hanwha Securities.
Shares in SK Telecom, the country's leading wireless operator, jumped 4.65 percent to 225,000 won, while shares in SK Corp, the effective holding company of the SK Group, also rose 6.06 percent to 43,750 won.
Daewoo Securities surged 9.86 percent to 4,680 won, and LG Investment & Securities Co rose 4.23 percent to 9,860 won. Both brokerage firms have been put up for sale by their major shareholders.
Among leading decliners, Samsung Electronics Co Ltd, the world's biggest maker of memory chips, closed 1.13 percent lower at 525,000 won, tracking a weaker tech-laced Nasdaq.
Foreign investors sold a net 33.1 billion won in local shares, while local institutions bought a net 34.4 billion won in shares. Retail investors sold a net 19.7 billion won.
Trade volume was 516.8 million shares, compared with 543.0 million on Tuesday. Turnover was valued at 2.35 trillion won, down from 2.61 trillion. Losers topped gainers by 389 to 337 with 87 stocks unchanged.
The March KOSPI 200 futures index was up 0.30 points at 114.05 and the underlying KOSPI 200 spot index rose 0.31 points to 113.63.
The junior Kosdaq ended down 1.10 percent at 428.93 points.
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