SEOUL, July 24: Seoul shares traded nearly flat on Wednesday, taking a breather after hitting an almost six-week closing high in the previous session, with weak Chinese manufacturing data keeping investors at bay.
The Korea Composite Stock Price Index (KOSPI) was up 0.07 percent at 1,905.50 points as of 0222 GMT. The KOSPI has risen 6.8 percent since late June as of Tuesday’s close.
‘The market has risen quite steeply lately and investors are taking a step back at the moment. For now, there are not enough positive catalysts in market to lift it further up,’ said Lee Jae-hoon, a market analyst at Mirae Asset Securities.
‘Emerging markets including South Korea need China’s recovery. Without it, investors will remain hesitant about getting in,’ Lee added.
Activity in China’s vast manufacturing sector slowed to an 11-month low in July as new orders faltered and the job market darkened, a preliminary survey showed on Wednesday, suggesting South Korea’s biggest export destination is still losing momentum.
Foreign investors were net buyers for a third straight day, purchasing a modest 16.8 billion won ($15 million) of shares.
LG Display Co Ltd, a key supplier to Apple Inc , jumped 2.4 percent after the iPhone maker’s earnings beat Wall Street estimates.
But crude refiners weakened with SK Innovation Co Ltd , South Korea’s biggest crude oil refiner, slipping 0.7 percent. GS Holdings, the holding company of GS Caltex, the country’s second-biggest crude oil refiner, fell 1.2 percent.
NHN Corp fell 2.8 percent after local media reported that South Korea’s ruling conservative Saenuri party is pushing to introduce new measures aimed at curbing some aspects of South Korean Internet portal operators’ activities.
Shipyards continued to outperform, buoyed by a recent streak of new orders. Hyundai Heavy Industries Co Ltd advanced 1.2 percent and Samsung Heavy Industries Co Ltd rose 0.9 percent.
The KOSPI 200 benchmark of core stocks was up 0.07 percent, while the junior KOSDAQ edged 0.03 percent higher. ($1 = 1117.0500 Korean won)
(agencies)
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