SEOUL: Seoul shares were trading flat on Thursday morning in a narrow range as investors took to the sidelines ahead of a key Spanish bond auction amid concern for the euro zone's financial health.
The Korea Composite Stock Price Index (KOSPI) ticked 0.04 percent lower at 2,003.65 points as of 0215 GMT.
"It's a quiet day in the market today, with investors taking a wait-and-see approach ahead of Spain's debt sale," said Lee Young-gon, an analyst at Hana Daetoo Securities.
"With uncertainty in Spain continuing to persist, investors may turn to US corporate earnings for clearer signs in the short run," he added.
Spain faces a key test of confidence on Thursday when it holds an auction of two- and 10-year bonds. Yields on Spain's 10-year notes climbed above 6 percent earlier this week, raising fears that it would not be able to meet its fiscal deficit target.
A day after Wall Street's best gains in a month, uninspiring earnings from tech bellwethers IBM and Intel gave investors a reason to take profits.
Financial stocks underperformed on uncertainty surrounding the euro zone debt crisis. Hana Financial Group fell 2.3 percent, while Woori Finance Holdings declined 2 percent.
Index-heavyweight Samsung Electronics edged 0.5 percent higher after snapping a six-day losing streak on Wednesday after an extended run of profit-taking.
Samsung Electro Mechanics, the second most heavily traded share on Wednesday, rallied 3.9 percent to outperform peers on rosy demand forecasts for smartphone components.
"Being a key parts supplier of Samsung Electronics' Galaxy-line of smartphones, Samsung Electro Mechanics have enjoyed a large windfall from robust Galaxy sales. Its PC and display-linked components are also enjoying greater profitability," said Park Kang-ho, an analyst at Daishin Securities.
196.6 million shares were exchanged hands on the main bourse while turnover was 1.55 trillion won ($1.36 billion) as of 0215 GMT.
Comments
Comments are closed for this article.