SEOUL, Apr 16: South Korea’s main stock index hit a near 5-month low on Tuesday on concerns over China’s weak growth data, but that spurred bargain-hunting which lifted it to close slightly higher.
The benchmark Korea Composite Stock Price Index (KOSPI) rose 0.1 percent to close at 1,922.21 points, rebounding from a more than 1 percent drop to below 1,900 points near mid-session.
‘Local institutions were net buyers for the first time in five sessions, and retail investors also snapped up bargains as hopes for the government’s extra budget bill supported retail sentiment,’ said Lim Dong-rak, an analyst at Hanyang Securities.
South Korea unveiled 5.3 trillion won ($4.7 billion) in stimulus spending plans on Tuesday to generate jobs, support small business and bolster property prices, as part of a 17.3 trillion won extra budget bill to be sent for parliament approval this week.
While domestic investors came in, foreign investors offloaded a net 245.4 billion won ($218.98 million) of KOSPI shares on the day, in line with Monday’s global equity selloffs on worries over slowing growth in China and the U.S.
The foreign selloff extended a trend of foreign investors’ exits from the South Korean stock market that saw them sell a net 1.68 trillion won of shares between April 1 to 15.
Index heavyweight Samsung Electronics, which slipped into negative territory mid-session, closed up 0.3 percent.
Investors flocked to defensive plays, with shares in instant noodle maker Nong Shim jumping 5.7 percent while those of internet portal operator NHN gained 5.9 percent.
Telecom shares also gained before South Korean pre-sales of Samsung Electronics’ Galaxy S4 smartphone begins on April 19, with SK Telecom rising 3.7 percent while KT jumped 3.8 percent.
But shares in steel and other metal makers saw the steepest losses among local sectors after cash gold and U.S. gold futures plunged to their weakest in more than two years on Monday.
Korea Zinc, a maker of non-ferrous metals including gold and silver, plunged 4.9 percent and zinc producer Young Poong slid 2 percent.
In the wider market, decliners outnumbered gainers 467 to 351.
The KOSPI 200 benchmark of core stocks closed up 0.1 percent, while the junior KOSDAQ fell 0.9 percent. (AGENCIES)
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