Seoul shares finished flat on Friday, as concerns about the impact of higher energy costs on firms profits were offset by gains at oil refiners, while Highness Semiconductor surged on news it had secured $1.3 billion in loans. The benchmark Korea Composite Stock Price Index (KOSPI) edged up 0.05 percent to end at 1,003.68, marking its fifth consecutive weekly gain. Shares rose 1.3 percent over the week, breaching the key psychological level of 1,000 points for the first time in three months on Wednesday.
Highness Semiconductor Inc jumped 6.42 percent to 17,400 won after its main creditor said it had secured $1.3 billion in syndicated loans. "This loan is a good deal for Highness," said Kim Young-min, an equity strategist at Dungeon Investment Trust Management. Firmer oil prices also boosted demand for shares in local refiners after US crude futures settled up $1.01, or 1.8 percent, at $56.58 a barrel on Thursday.
Oil was trading at $56.73 a barrel in Asia. SK Corp, South Korea's top oil refiner, rose 1.08 percent to 56,000 won. But the flip side to the spike in oil saw key manufacturers fall amid worries higher energy prices would dent their profits.
LG Electronics Inc, the world's top maker of air conditioners, fell 1.14 percent to close at 69,300 won. South Korea's top carmaker Hyundai Motor Co shed 0.34 percent to 58,600 won and Samsung Electronics Co Ltd, the world's biggest maker of memory chips, slipped 1 percent to close at 493,500 won. South Korea is the world's fourth-biggest buyer of crude oil and must import all of its crude needs, making it particularly vulnerable to price increases.
However, Finance Minister Han Duck-soo was quoted by local media as saying Asia's third-largest economy was weathering high oil prices better than expected, but that the won currency's appreciation posed a threat to corporate profits.
News that North Korean leader Kim Jong-il would meet South Korea's unification minister on Friday had little impact as dealers said they did not expect a significant breakthrough in getting Pyongyang to return to talks on its nuclear ambitions.
Comments
Comments are closed.