Seoul shares ended slightly firmer on Thursday helped by gains in some techs and steel issues, but losses by banks including Hana Financial Group weighed. The Korea Composite Stock Price Index (KOSPI) finished up 0.27 percent at 1,336.72 points.
"Although foreign investors keep buying, which is a positive signal, institutions are selling quite heavily, either because they are unsure about the economic outlook or because their clients are redeeming funds at the index's current level," said Lee Sun-yeob, a market analyst at Goodmorning Shinhan Securities.
Institutions sold a net 569.1 billion won, while foreign investors were buyers of a net 474.4 billion won. "In order for a more meaningful rebound to set in, the markets need clearer indicators that the economy is turning around," Lee added.
Shares in Interpark turned lower after the company said on Thursday that it would sell $350 million worth of Gmarket Inc shares to eBay Inc, making the US online auctioneer a dominant player in South Korea. Interpark ended down 10.82 percent on uncertainty about its outlook, analysts said.
"Getting cash from the Gmarket sale itself is positive, but the fact that Interpark failed to give a clear vision of what it will do with the money has disappointed investors," said Lee Chang-young, an analyst at Tong Yang Securities. LG Display also underperformed the benchmark, shedding 0.32 percent ahead of its first-quarter results that came out after the closing bell. The flat-screen maker posted a second straight quarter of losses due to weak panel prices and depressed demand for electronics.
Elsewhere, steelmakers rallied on the back of strengthening hopes about the economy. "We think steelmakers' earnings will probably improve from the second quarter," said Cho In-je, an analyst at KB Investment & Securities. POSCO ended up 4.11 percent, while Hyundai Steel jumped 7.89 percent. But losses by banks weighed on the main index, as worries about their quarterly results mounted ahead of earnings announcements, analysts said.
Hana Financial Group fell 5.01 percent and Woori Finance Holdings lost 5.32 percent. Retail investors bought a net 104.2 billion won. Advancers led decliners 475 to 333, with 72 unchanged. Trading volume stood at 733.5 million shares worth 8.8 trillion won, compared with 798 million shares worth 7.89 trillion won on Wednesday. The KOSPI 200 June futures index declined 0.10 points to 171.80 and the KOSPI 200 spot index rose 0.52 points to 171.73. The junior Kosdaq market declined 0.93 percent to end at 497.52 points.