Seoul shares ended 0.5 percent higher on Monday, reversing earlier losses of as much as 1.6 percent, as the weaker won eased concerns about exporting issues and sent key tech exporters higher, but losses in retailers weighed. Analysts said the weaker won helped boost sentiment, helping stem institutional selling on technology issues and reviving foreign buying.
"There had been concerns about to what extent the won will strengthen and how it will affect South Korean exporters," said Lee Sun-yeop, a market analyst at Shinhan Investment Corp. "But markets still lack a strong positive, and the main index is likely to move within a boxed range, roughly at around its 20-day and 60-day moving average," Lee added.
The main KOSPI's 20-day moving average is about 1,644 points and its 60-day moving average is about 1,600 points, Thomson Reuters data showed.
The Korea Composite Stock Price Index (KOSPI) ended up 0.53 percent at 1,649.07 points. Institutions were sellers of a net 168.6 billion won worth of stocks and foreign investors were buyers of a net 96.4 billion won.
Weaker on lifted exporters in technology and auto sectors, including LG Electronics and Hyundai Motor, by 3.57 percent and 1.1 percent each. Citigroup Global Markets reiterated a 'buy' on Hyundai Motor in a Friday note, saying the concern on the won's appreciation appeared overdone, and the recent share price weakness provided a better entry point for the stock.
Lotte Shopping, the country's No 2 retailer by market value, fell 0.8 percent after its parent group confirmed an agreement to buy a controlling stake in Chinese supermarket operator Times for up to an estimated $650 million. But Lotte Shopping outperformed its retail peers such as Shinsegae Co Ltd and Hyundai Department Store, which lost 2.24 percent and 2.16 percent each.
"I guess today's Times buyout confirmation brought some relief, as pricing, while high, was not as high as the ones Lotte paid in its previous merger and acquisitions attempt," said Seo Jung-yeon, an analyst at Shinyoung Securities.
"People who had expected the worst are relieved," she said, adding that shares in Shinsegae fell as its discount retailer E-Mart suffered from downturn in discount retail businesses.
Elsewhere spirits maker Jinro Ltd ended at 42,450 won on its first trading day, above its IPO price of 41,000 won, which was set below its indicative range last month. Decliners led advancers 392 to 373, with 107 counters ending unchanged.
Trading volume stood at 268 million shares worth 4.3 trillion won, compared with Friday's 365.4 million shares worth 5.7 trillion won. The KOSPI 200 December futures index rose 0.70 points to 216.50, while the KOSPI 200 spot index ended up 1.28 points at 216.19. The junior Kosdaq market rose 0.14 percent to finish at 508.95 points.
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