Seoul stocks came roaring back on Wednesday after falling slightly early in the session, as investors snapped up auto and food shares, encouraged by a recent retreat in oil prices. The Korea Composite Stock Price Index ended up 1.56 percent at 2,121.92 points. Individuals were net buyers of a net 62.4 billion won ($57.1 million), offsetting foreign and institutional selling.
Lee Jae-hoon, a market strategist at Mirae Asset Securities, said the upbeat outlook for Asia's fourth-largest economy would continue to attract investors, although shares were viewed as overpriced. With prospects on strong quarterly results, Korean carmakers led the market higher, supported by persistent views that they could benefit from the prolonged production disruptions affecting Japanese automakers following the March 11 earthquake.
The country's top automaker Hyundai rallied 6.25 percent, recouping losses in the previous session. Affiliate Kia Motors climbed 4.55 percent. Samsung Electronics, the country's biggest company by market capitalisation, rebounded 2.15 percent after falling for five consecutive sessions on disappointing earnings forecasts. Shares in tyre and food makers jumped on waning cost concerns as commodity prices fell sharply after more bearish comments on oil from Goldman Sachs spurred selling. Hankook Tire spiked 8.86 percent and processed food maker CJ Cheiljedang rose 4.75 percent.
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