Seoul shares inch up on institutional gains

(ATTN: ADDS bond yields at bottom)
SEOUL, June 13 (Yonhap) -- South Korean stocks ended 0.1 percent higher on Monday as institutional investors' buying of steelmaker and bank shares overshadowed losses of refiners and machinery stocks, analysts said. The local currency fell against the U.S. dollar.
After trading in negative territory, the benchmark Korea Composite Stock Price Index (KOSPI) climbed 2.07 points to 2,048.74. Trading volume was light at 215 million shares worth 5.51 trillion won (US$5.07 billion), but losers outnumbered gainers 551 to 274.
"Falls in U.S. markets increased the volatility of the Seoul bourse, but the local market recouped earlier losses," said Bae Sung-young, a market analyst at Hyundai Securities Co. "But investor sentiment remained fragile as concerns about the global recovery weighed on the market."
Outlooks for the global economy have become increasingly grim recently as U.S. economic data is raising concerns that the world's largest economy is in a soft patch or entering another economic recession. On the recovery woes, foreign investors dumped a net 200.9 billion won worth of local stocks on the main bourse.
Amid a lack of leads, car makers gained ground, overshadowing losses in shares of refiners and machinery. Leading automaker Hyundai Motor added 1.57 percent to 226,500 won, and its affiliate Kia Motors advanced 0.43 percent to 70,800 won.
But a fall in oil prices sent shares of refiners lower due to concerns about squeezed margins. Leading refiner SK Innovation declined 1.12 percent to 220,000 won.
Retail giant Shinsegae tumbled 10.06 percent to 336,500 won on the second trading day of its share re-listing after the company spun off its discount store business.
Tech shares were also under selling pressure. Chip giant Hynix Semiconductor fell 1.31 percent to 26,350 won, and flat panel giant LG Display lost 1.72 percent to 31,400 won.
U.S. markets closed sharply lower on Friday due to concerns about an economic slowdown. The Dow Jones industrial average fell 1.42 percent, and the tech-laden Nasdaq Composite Index shed 1.53 percent.
The local currency ended at 1,085.90 won to the dollar, down 3.3 won from Friday's close, as concerns about the global recovery spurred demand for safe assets, dealers said.
Bond prices, which move inversely to yields, closed sharply lower. The yield on three-year Treasuries added 0.01 percentage point to 3.66 percent and the return on the benchmark five-year government bonds rose 0.02 percentage point to 3.93 percent.
sooyeon@yna.co.kr