South Korean stocks fell on Thursday, battered by the heaviest foreign selling since early March, but managed to pare early losses that had driven the benchmark index to one-month lows. The Korea Composite Stock Price Index (KOSPI) fell 0.4 percent to close at 1,983.63 points, after sliding at one point to 1,969.09, the lowest level since March 8.
South Korean financial markets were closed on Wednesday due to parliamentary elections. "Thursday's options expiry triggered unwinding of futures on narrowing basis spreads, but selling pressure was especially heavy among foreigners, with institutions having already vented steam through steady fund redemptions all throughout March and April," said Ham Sung-sik, an analyst at Daishin Securities.
Offshore investors dumped a net 365.7 billion won ($320.9 million) worth of shares, their heaviest daily net selling in over a month. Blue-chip technology counters took a battering from foreign sell-offs as investors cashed out on recent gains. Samsung Electronics, the most heavily-traded stock on Thursday, and rival LG Electronics both fell around 2.9 percent.
Investors continued to seek bargains in recent laggards, however, helping energy and petrochemical shares outperform. SK Innovation, South Korea's largest crude oil refiner, rose 2.5 percent while LG Chem, the country's biggest chemical maker, climbed 3.5 percent.
Aluminum producer Alcoa Inc started the US earnings season on a high note by posting a surprise upswing out of the red in the first-quarter, lending support to material shares on hopes of improving global market conditions. POSCO, the world's third-largest steelmaker, rose 1.4 percent while Hyundai Steel gained 2.4 percent. The KOSPI 200 index fell 0.54 percent while the junior KOSDAQ index rose 0.19 percent.
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