Seoul shares ended higher on Friday after volatile trade, with Samsung SDI rallying on auto battery business hopes and Hite Holdings gaining on news it would sell a stake in Jinro. The Korea Composite Stock Price Index (KOSPI) finished up 0.55 percent at 1,383.34 points. "Shares crawled back today after their latest losses, helped by rises in US stocks overnight," said So Jang-ho, a market analyst at Samsung Securities.
Foreign investors turned net buyers after a four-session selling streak, picking up a net 25.5 billion won ($20.12 million) worth of shares. Shares in Samsung SDI surged 5.77 percent after a local media report that German industrial conglomerate Robert Bosch [ROBG.UL] was going to prioritise the auto battery business in a South Korea-based joint venture set up with Samsung SDI last year.
"Investors were not quite sure what to make of this joint venture since there have not been notable developments related to it so far. The report seems to have helped ease such uncertainties," said Lee Sun-ho, an analyst at Goodmorning Shinhan Securities.
Samsung Techwin, a maker of closed-circuit televisions (CCTV) and aircraft engines, advanced 6.3 percent helped by a positive brokerage note. Dongbu Securities said "many positive outcomes, including new orders from overseas" were expected for Samsung Techwin this year.
Shares in Hite Holdings gained 6.52 percent after the company said in a filing to the Korea Exchange late on Thursday it was selling a stake worth 289.4 billion won ($229.4 million) in Jinro Ltd. Hite Holdings will control 52.1 percent of the spirits maker after the stake sale. "The stake sale will strengthen Hite Holdings' financial condition and make the re-listing of Jinro easier," said Lee So-yong, an analyst at KB Investment & Securities. Jinro is looking to make a public offering on the domestic bourse by end-September at the earliest, according to media reports.
KB Financial Group ended up 1.65 percent and Shinhan Financial Group climbed 2.53 percent. Decliners led advancers 399 to 378, with 97 unchanged. Trading volume stood at 461.6 million shares worth 4.2 trillion won, compared with 490.9 million shares worth 4.4 trillion won on Thursday. The KOSPI 200 September futures index rose 0.20 points to 175.55, and the KOSPI 200 spot index gained 1.09 point to 176.63. The junior Kosdaq market ended 0.57 percent lower at 510.27 points.