Seoul shares rose on Wednesday, lifted by gains in refiners and automakers, but CJ Group-related shares tumbled after it was picked as the preferred buyer for Korea Express. The Korea Composite Stock Price Index ended up 1.53 percent at 2,094.42 points, hovering near its 60-day moving average of around 2,100 points.
KOSPI 200 September futures ended up 3.3 points at 275.75 points and the KOSPI 200 spot index rose 4.2 points to 274.61. The junior Kosdaq market ended up 0.4 percent at 476.57. "The latest reports about positive developments regarding Greece rescue plans have buoyed sentiment," said Kim Soo-young, a market analyst at KB Investment & Securities. Prospects that Greece would pass an austerity package needed to avoid sovereign default improved on Tuesday when a key deputy added his support, even as street protests turned violent in Athens.
Foreign investors were buyers of a net 419.5 billion won ($388.2 million) worth of stocks, snapping two straight sessions of selling. "[The Greek rescue package] is not a cure, just a temporary measure to stop the bleeding. Even if stocks rebound, investors will likely remain somewhat cautious for some time," said Y.S.Rhoo, a market analyst at Hyundai Securities.
Shares of CJ Group companies dropped for a second day due to concerns of the food-to-entertainment conglomerate paying excessively for an over 2 trillion won controlling stake in logistics firm Korea Express. Food processing firm CJ Cheiljedang, whose consortium with unlisted logistics affiliate CJ GLS was picked as the preferred bidder for Korea Express on Tuesday, tumbled 6.4 percent.
CJ Corp, the group's holding company, edged up 0.6 percent after the company said it would buy new shares issued by GLS to fund the acquisition. Crude oil refiners were lifted after oil prices rose more than 2 percent in US trade overnight, pointing to higher sales and product pricing.
Shares in S-Oil, the country's No 3 crude oil refiner, rose 4.5 percent and SK Innovation, South Korea's biggest refiner, advanced 3.3 percent. Electronics retailer Himart made a weak start on its first day of trade on the main KOSPI. Shares in Himart ended down 3.4 percent from its initial public offering price of 59,000 won at 57,000 won.