(LEAD) S. Korean shares end higher on foreign buying

(ATTN: ADDS bond yields at bottom)

SEOUL, Dec. 29 (Yonhap) -- South Korean shares closed a tad higher on Thursday, aided by foreign buying, while institutions dumped stocks with large losses as part of window dressing efforts on the last trading day of the year. The local currency gained ground against the U.S. greenback.

The benchmark Korea Composite Stock Price Index (KOSPI) added 1.97 points, or 0.10 percent, to 2,026.46. Trading volume was slim at 261.2 million shares worth 2.95 trillion won (US$2.44 billion) with gainers outnumbering losers 417 to 370.

The index opened on a weak note, losing 0.34 percent in the first 15 minutes of trading. The market pared earlier losses after foreigners turned to buying.

"Investors remained rather stale amid a lack of any clear leads. Also, foreign investors turned to buying despite a lack of any clear event," Hyundai Securities analyst Bae Sung-young said.

"Institutions, on the other hand, offloaded en masse apparently as part of their window dressing efforts," he added.

Foreign investors purchased a net 128.6 billion won, while institutions dumped a net 296.3 billion won.

Retail investors were net buyers, scooping up 155.3 billion won worth of local shares.

Large caps closed mixed.

Market bellwether Samsung Electronics added 0.78 percent to 1,802,000 won, but global chipmaker SK hynix plunged 1.43 percent to 44,700 won.

Top automaker Hyundai Motor spiked 1.74 percent to 146,000 won, and its smaller affiliate Kia Motors advanced 0.77 percent to 39,250 won.

Defensive stocks were in negative terrain, with state-run utilities giant KEPCO tumbling 2.22 percent to 44,050 won.

The local currency closed at 1,207.70 won against the U.S. dollar, up 2.80 won from the previous session's close.

Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys lost 0.5 basis point to 1.638 percent and the return on the benchmark five-year government bond slipped 0.4 basis point to 1.799 percent.

bdk@yna.co.kr
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