Seoul shares end off highs

Seoul shares ended 2.4 percent higher on Wednesday, halving 5 percent gains after a Democrat win in the US presidential election as investors looked ahead to Korean/US trade issues under President Barack Obama. The Korea Composite Stock Price Index closed up 2.44 percent at 1,181.50 points. It earlier crossed the 1,200 point level for the first time since October 21 on its way to the session high of 1,217.82 points.
The index is still up 32.4 percent from last month's near-four-year low of 892.16 points, posting its fifth straight closing gain after October's traumatic losses. "Bubbly hopes and expectations over the new administration more or less faded as the session wore on, as investors became more keen to see what Obama's presidency would mean to South Korea, particularly in terms of trading relations," said Lee Kyung-su, a market analyst at Taurus Investment & Securities.
"There are worries that the Free Trade Agreement with the US may be scrapped altogether, which will deal a blow to exporters, auto makers in particular," Lee said, adding the new administration's likely interest in alternative energy had little to do with South Korea's key sectors, such as heavy industries.
Foreign investors were net buyers of 63.5 billion won ($50.36 million) and retail investors were sellers of a net 217 billion won. Hyundai Motor, the world's No 5 auto maker, lost 0.72 percent to 54,800 won off from an earlier high of 58,700 won. Samsung Electronics underperformed against the benchmark index, gaining 0.19 percent.
But banks continued to trade higher, scoring a third consecutive gaining session with KB Financial Group, holding company of South Korea's largest lender Kookmin Bank, ending up 1.96 percent and Shinhan Financial Group, a top financial holding company, rising 2.17 percent. Daewoo Engineering & Construction ended 2.39 percent higher and Kumho Industrial gained 7.89 percent. Trade volume stood at 781.5 million shares worth 7.9 trillion won, from 598 million shares worth 6.7 trillion won traded on Tuesday.