Korean stocks finished a tad higher on Friday as bargain hunting by foreign and retail investors helped recover earlier losses, analysts said. The local currency fell against the U.S. dollar.

After falling as much as 0.61 percent, the benchmark KOSPI added 0.04 percent, or 0.71 percentage point, to reach 2,026.83. Trading volume was moderate at 500 million shares worth 4.77 trillion won with losers outpacing gainers 422 to 382.

“Foreigners resumed net buying, mostly picking up shares of base metal makers and chemical companies that have been discounted in recent sessions,” said Lee Kyung-soo, an analyst at Shinyoung Securities Co.

Bargain hunting helped the KOSPI wipe out earlier drops, which were sparked by growth concerns from slowing manufacturing in China and weak economic figures from Europe. Foreign investors bought more stocks than they sold for the first time in three days.

Korea Zinc, the world’s No. 2 zinc smelter, jumped 3.26 percent to 380,000 won and Hyundai Steel, the second-largest steel maker, added 1.1 percent to 101,000 won. Leading chemicals maker LG Chem advanced 2.37 percent to 367,500 won.

Shipyards also reversed earlier declines and finished higher.

Top shipbuilder Hyundai Heavy Industries added 1.76 percent to 318,000 won and its rival Samsung Heavy Industries climbed 1.72 percent to 41,300 won.

But financial companies lost ground on foreign sell-offs. Woori Finance Holding, the largest financial service company, slumped 3.27 percent to 13,300 won and Hana Financial Group fell 1.56 percent to 44,050 won.

The local currency finished at 1,135.3 won to the greenback, down 5.9 won from Thursday’s close, amid worries about prospects for the global recovery, dealers said. 

(Yonhap News)