South Korean stocks closed higher Monday as investors expected local exporters to get a boost from weak oil prices, analysts said. The local currency dropped against the U.S. dollar.

The benchmark Korea Composite Stock Price Index gained 3.42 points, or 0.18 percent, to close at 1,952.68. Trading volume was moderate at 357.89 million shares worth 4.3 trillion won ($3.9 billion), with gainers outpacing losers 444 to 365.

Analysts said the weak oil prices upped the earnings outlook of exporters such as carmakers and steelmakers who would be able to cut transportation costs.

“Carmakers and steelmakers are the major winners of the falling oil prices,” said Cho Byung-hyun, an analyst at Yuanta Securities Korea.

The gain was limited, however, as investor sentiment was weakened by lower-than-expected U.S. GDP numbers in the fourth quarter. The U.S. Department of Commerce put the quarterly economic growth at 2.6 percent on-year, less than the market-estimated 3 percent.

Foreign investors sold more shares than they bought at 564 million won, while individuals bought a net 48.5 billion won.

Institutions offloaded a net 61.1 billion won.

Carmakers closed higher, with Hyundai Motor adding 0.88 percent to 171,000 won and Kia Motors increasing 1.2 percent to 46,550 won.

Top auto parts maker Hyundai Mobis climbed 0.6 percent to 249,500 won. (Yonhap)