Seoul stocks hit a record high on Tuesday, as non-life insurers such as Samsung Fire and Marine Insurance extended recent gains on expectations higher local interest rates will boost investment yields.
But concerns over the impact of higher oil prices on corporate earnings and caution ahead of the Federal Reserve's monetary policy meeting later in the day capped broader gains.
The benchmark Korea Stock Price Index touched an all-time high of 1,339.69 in early trade before finishing up 0.24 percent at 1,336.48. The index has posted record highs in seven of the nine trading sessions so far this month.
"Investors expect the market to maintain its recent bullish trend, but are reluctant to push the index further given some uncertain issues, such as the Fed's interest rate setting meeting," said Chang In-whan, chief executive and fund manager at KTB Asset Management.
Samsung Fire and Marine Insurance Co, South Korea's biggest non-life insurer, gained 4.8 percent to close at 131,000 won, after hitting a record high of 140,500 won earlier in the session.
Among brokerages, which are also expected to benefit from friendly measures by the government going forward, Samsung Securities Co, South Korea's most valuable brokerage, jumped 5.20 percent to 58,700 won. But banking shares fell, with the country's top lender Kookmin Bank sliding 1.62 percent to 73,000 won.
KTF rose 3.29 percent to 25,100 won after industry sources said Japan's top mobile carrier, NTT DoCoMo Inc, was in final talks to buy a 10 percent stake in South Korea's No 2 mobile carrier. Hyundai Motor Co, South Korea's largest auto maker, closed up 1.37 percent to 95,900 won.
Foreign investors sold a net 123.9 billion won ($120.3 million) worth of local shares on Tuesday, bringing their total over the past five sessions to some 834 billion won worth. Institutional investors bought a net 121.3 billion won, while retail investors purchased a net 7.3 billion won. Trade volume reached 483 million shares worth 4.4 trillion won compared to 463 million shares worth 4.3 trillion won on Monday. Gainers edged out decliners by 388 to 345 with 83 titles ending flat.
The March KOSPI 200 futures index fell 0.35 point to 169.55, while the underlying KOSPI 200 spot index gained 0.30 point to 171.65. South Korea's junior and tech heavy Kosdaq market rose 0.76 percent to finish at 738.99.