Seoul shares snapped a four-session losing streak on Wednesday buoyed by technology stocks, but gains were capped by foreign selling amid uncertainty about the looming US "fiscal cliff". The Korea Composite Stock Price Index (KOSPI) finished up 0.23 percent at 1,894.04. Foreigners offloaded stocks on the main bourse for a fifth consecutive session, dumping a net 75.3 billion Korean won ($69.09 million) worth of shares.
"Investors are sitting on the fence as a political debate started over the US fiscal cliff. There are concerns that foreigners may continue selling to reap gains from the recent appreciation of the South Korean won," said Kim Young-jun, an analyst at SK Securities.
Global stocks have lost ground since the re-election of US President Barack Obama last week, as investors have shifted focus to the fiscal cliff, a convergence of urgent tax and spending issues that could plunge the economy into recession. On Tuesday, the US Congress gathered in Washington for the first time since the elections, with a fundamental tax dispute preventing a broader compromise on deficit reduction. Some technology shares rallied, with LG Electronics up 4.59 percent and SK Hynix gaining 4.93 percent. LG Electronics extended gains after Shinhan Investment expected the company to boost smartphone sales and outpace HTC Corp as the third biggest smartphone maker in the fourth quarter.
Flat-screen maker LG Display bucked the trend, down 0.29 percent after news that its ailing rival Sharp Corp is in talks to secure $378 million in investment from US-based Intel Corp and Qualcomm Inc. Among large stocks, tech bellwether Samsung Electronics edged up 0.44 percent, while Hyundai Motor gained 2.12 percent. Doosan Heavy Industries and Construction Co Ltd rallied 3.93 percent after it had a 1.1 trillion won ($1.0 billion) letter of award to build a desalinisation plant in Yanbu, Saudi Arabia.
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