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Seoul shares finished a touch higher on Thursday, as investors sought out defensive stocks and select blue chips such as SK Telecom, helping reverse early losses from concerns about the impact of record oil prices.
Energy-sensitive stocks such as Korea Electric Power Corp and Korean Air came under heavy selling pressure.
The benchmark Korea Composite Stock Price Index (KOSPI) rose 0.28 percent to finish at 1,097.29, after falling as much as 1.38 percent earlier in the session.
SK Telecom rose 2.41 percent to 191,000 won, lifted by investors seeking safe bets amid surging oil prices.
Top local carmaker Hyundai Motor Co rebounded from early losses to end 1.44 percent higher at 70,600 won, despite news its union had extended strike action into next week.
Shares in Kia Motors Corp fell 0.65 percent to 15,350 won ahead of a union vote on Friday on a strike proposal, but trimmed early losses of 3.56 percent.
Shares in state-run power monopoly KEPCO fell 0.15 percent to 32,450 won, while Korean Air lost 2.69 percent to 18,100 won due to worries over higher fuel costs.
Trade volume reached around 331 million shares worth 2.8 trillion won compared to 335 million shares worth 3.1 trillion won on Wednesday. Decliners outnumbered gainers by 405 to 332 with 75 titles ending unchanged.
Foreign investors sold a net 237.7 billion won in shares on the main bourse, extending a selling streak to a eighth consecutive session. But retail investors and local institutions were net buyers, purchasing a net 64.8 billion won and 80.1 billion won worth, respectively.
The September KOSPI 200 futures index rose 0.75 point to 141.35 and the underlying KOSPI 200 spot index climbed 0.48 point to 141.75. South Korea's junior and tech heavy Kosdaq market fell 0.13 percent to finish at 517.63.

Copyright Reuters, 2005

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