SEOUL: Seoul shares gave up initial gains and slipped in volatile trade on Thursday amid growing doubts that governments in Europe can contain the region's debt crisis, while Hynix rallied on a US court ruling against Rambus Inc.
"The pattern has been repeating; investors buy at the low-1,800 points and sell as the index rises above 1,900 points," said Shin Joong-ho, a market analyst at Hanwha Securities.
"The reason is uncertainty. Even Europe does not know what is going to happen there, and investors are even more unsure," Shin said.
Shin sees a ceiling for the main KOSPI index until the year-end of 1,950 points, near its 120-day moving average.
France and Germany, Europe's two central powers, clashed on Wednesday over whether the European Central Bank should intervene more forcefully to halt the euro zone's accelerating debt crisis after modest bond purchases failed to calm markets.
Foreign investors were sellers of a net 79.6 billion won ($70 million) worth of stocks, and institutions were sellers of a net 150.3 billion won, offloading shares for a third straight session.
The Korea Composite Stock Price Index (KOSPI) was down 0.12 percent at 1,853.88 points as of 0148 GMT.
Shares in Hynix rallied 3 percent after Rambus lost a $4 billion antitrust lawsuit against Micron Technology and the world's No.2 memory chip maker.
Hynix shares were rising on expectations of an unwinding of provisions set aside for the legal battle with Rambus, which could boost operating profits, said IBK Securities analyst Nam Tae-hyun.
Financial stocks came under pressure amid growing wariness about the sector and after the S&P financial sector index fell 2.5 percent.
Shares in KB Financial Group fell 0.5 percent and Hana Financial Group shed 1.4 percent.
Retailers were hurt by data on Thursday that showed annual sales growth at South Korea's top department stores hit the lowest in two and a half years in October.
Shinsegae Co Ltd fell 2.1 percent and Lotte Shopping Co Ltd declined 3.7 percent.
Korea Express fell 1.l percent after news a consortium led by CJ Group member companies may lower its agreed purchase price for a controlling stake in South Korea's biggest logistics firm by up to 10 percent.
Comments
Comments are closed for this article.