Seoul shares end lower, firmer won hits Hyundai Motor

Seoul stocks fell on Thursday, as Hyundai Motor and other exporters slipped on concerns about the impact of a surging won, but hopes that a recovery in consumer spending may be on the way lifted domestic demand-related shares. Top local oil refiner SK Corp fell 2.96 percent to 55,800 won, despite announcing a surge in quarterly profits, as investors fretted over a dip in US crude futures and amid worries profits had peaked in 2005 amid record oil prices.
The benchmark Korea Composite Stock Price Index (KOSPI) ended 0.23 percent lower at 924.87. The South Korean won touched its highest against the dollar since November, 1997 during trade, sparking concerns about the price competitiveness of local exporters.
Hyundai Motor Co, South Korea's top carmaker, fell 2.18 percent to end at 58,400 won, while affiliate Kia Motors Corp slid 1.16 percent to 12,800 won.
On the flip side, the stronger won boosted investors' appetite for domestic-demand oriented shares, which are less affected by currency fluctuations, though a late bout of profit-taking capped gains.
"A surging won shifted the buying focus onto domestic stocks, such as brokerages and construction firms," said Park Suk-hyun, an analyst at Kyodo Securities.
South Korea's top-ranked brokerage, Samsung Securities Co, rose 0.18 percent to end at 27,500 won, while builder Hyundai Engineering and Construction Co climbed 0.55 percent to close at 18,350 won.
Hyundai Department Store, South Korea's No 2 department store chain behind unlisted Loathe Department Store, rose 0.26 percent to end at 38,800 won.
"The recent positive comments by the central bank governor and the minister of finance are adding to market hopes that consumer demand could begin recovering after the second quarter," said Cho Seung-joon, an analyst at Meritz Securities.
South Korea's finance minister said on Thursday there were signs South Korean consumer spending may be recovering from a slump, while Bank of Korea Governor Park Seung made similar comments on Wednesday.
Meanwhile, shares in Samsung Electronics Co Ltd, the world's top maker of memory chips, rose 0.31 percent to 492,000 won, bolstered by a 2.6 percent rise in the Philadelphia Stock Exchange's semiconductor index.