SEOUL, Mar 22: Seoul shares traded flat near five-week lows on Friday morning, with some recently battered blue-chip shares finding a firmer footing, which helped offset net selling by foreigners for a seventh straight session fuelled by uncertainty over Cyprus.
The Korea Composite Stock Price Index (KOSPI) has languished compared to other bourses this year, hit by a weaker yen that makes Japanese rivals more competitive, tension with North Korea and uncertainty over the nation’s growth potential.
‘Foreign selling is due to KOSPI’s underperformance this year, particularly compared to the Dow,’ said Park Seok-hyun, an analyst at KTB Securities.
The index was 0.1 percent higher at 1,952.70 points as of 0232 GMT but is down 2.3 percent for the year as of Thursday’s close. By contrast, the Dow Jones industrial average is up 10 percent in 2013.
Foreigners sold a net 84 billion won of stocks near mid-session.
LG Display was up 1.3 percent after brokerage Hyundai Securities reaffirmed its buy rating, adding that the panel-maker’s January-March earnings will exceed expectations.
Korea Electric Power Corp rose 1.2 percent after winning a contract to operate a coal-based power plant in Vietnam.
On the downside, telecoms were down 2.4 percent, extending Thursday’s 2.4 percent loss after SK Telecom introduced a free-call service for its subscribers.
Overall, 390 shares advanced while 368 declined.
The KOSPI 200 benchmark of core stocks was up 0.1 percent, while the junior KOSDAQ edged 1 percent lower. (agencies)
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