South Korean stocks closed almost unchanged on Friday as the positive news from the eurozone overnight failed to give a much-needed boost to weak investor sentiment ahead of a holiday, analysts said. The local currency fell against the U.S. dollar.

   The benchmark Korea Composite Stock Price Index (KOSPI) inched up 0.36 points, or 0.02 percent to 1,769.65. Trading volume was moderate at 322.2 million shares worth 6.1 trillion won (US$5.2 billion), with gainers outnumbering losers 536 to 292.

   "Efforts to solve the European debt problem are cruising smoothly. But investors seem to be refraining from risks ahead of a holiday on worries an abrupt change in the situation would hurt stock markets," said Hong Soon-pyo, an analyst at Daishin Securities Co.

   On Thursday, three European countries, including economic powerhouse Germany, approved the expansion of a eurozone bailout fund, raising hopes the region's deepening debt crisis will soon reach a resolution.
Hong said investors should keep tabs on the latest developments of the European debt crisis as well as U.S. economic data scheduled to be released next week. South Korean financial markets will be closed on Monday for a national holiday.

   "External uncertainties are likely to continue to impact the local market. The U.S. manufacturing data may not be robust, but it will be enough to relieve investors from double-dip recession fears," he said.

   Market heavyweights closed mixed. Shipbuilders largely gathered ground with top player Hyundai Heavy Industries gaining 2.15 percent to 284,500 won and its smaller rival Samsung Heavy Industries adding 3.1 percent to 28,250 won.

   Online-focused companies were also bullish with NHN, the operator of the country's most-visited portal, surging 7.69 percent to 238,000 won and game developer NCsoft rising 2.75 percent to 336,000 won.

   Top builder Hyundai Engineering & Construction jumped 4.94 percent to 61,600 won on views it will post strong third-quarter profit on the back of overseas orders.

   In contrast, market bellwether Samsung Electronics slipped 0.6 percent to 832,000 won and top steelmaker POSCO lost 2.92 percent to 366,000 won.

   Hynix Semiconductor, the world's No. 2 chipmaker, also lost 1.37 percent to 21,550 won on forecasts it will see operating losses in the second half of the year.

   The local currency closed at 1,178.1 won against the greenback, down 4.6 won from Thursday's close, as investor appetite for safe-haven assets grew following a credit rating downgrade of New Zealand, dealers said.

   Credit ratings agencies Standard & Poor's Ratings Services and Fitch Ratings both slashed their ratings on New Zealand, citing its worsening external-debt position and earthquake restoration costs.

Source: Yonhap News (Sept. 30, 2011)