South Korean shares rose on Thursday, led by Samsung Electronics following the launch of its new smartphone, but gains were capped by worries about Europe following street protests in Spain and Greece against more austerity measures. The Korea Composite Stock Price Index (KOSPI) closed up 0.4 percent at 1,988.70 points, slightly above the previous day's two-week low.
"The index continues to hover just below the 2,000-mark as there is no new momentum to move markets following the quantitative easing by the ECB and the Federal Reserve," said Jeong Seung-jae, an analyst at Mirae Asset Securities. Seoul's benchmark KOSPI index has been trading within a tight range ahead of local holidays, which would see the markets closed next Monday and Wednesday.
The country's highest-valued stock, Samsung Electronics, closed up 1 percent following the unveiling of its new Galaxy Note 2 o n Wednesday. Local institutional investors buttressed the index by buying 95 billion won ($84.74 million) worth of KOSPI shares at market closing.
Insurers also saw solid gains, with Samsung Life Insurance up 0.84 percent, while Hyundai Marine & Fire Insurance rose nearly 2 percent. Decliners outnumbered gainers 421 to 386. The KOSPI 200 benchmark of core stocks closed up 0.5 percent, while the junior KOSDAQ edged 0.5 percent lower.