Roundup: S.Korean shares rise for six days on foreign purchase

South Korean shares ended in positive territory for six straight sessions Wednesday as foreign investors bought more shares than they sold, offsetting sell-off from local institutions.

The benchmark Korea Composite Stock Price Index (KOSPI) gained 4.33 points, or 0.21 percent, to 2,085.53 at the close. Trading volume stood at 394.96 million shares worth 5.24 trillion won (4. 73 billion U.S. dollars).

The KOSPI took off a strong start, but moved in a narrow range as local institutions sold stocks, dampening the optimistic view of foreigners over the domestic stock market.

Foreigners turned into net buyers for the first time in seven sessions by purchasing a net 63 billion won worth of local shares. Institutional investors offloaded shares worth 34 billion won, and retail investors were net sellers of a net 26 billion won of stocks.

Concerns eased over the European debt crisis amid rising hopes that Greece would strike a deal for bailout funds with its European creditor countries.

Domestic investors, however, still worried about possible negative effects of the infectious disease spread here on the already lackluster domestic demand.

Infection with the Middle East Respiratory Syndrome (MERS) in South Korea rose to 179 Wednesday as four more cases were added. The MERS outbreak has continued for more than a month since the first case was identified on May 20.

The MERS spread abated recently, but consumers still worried about possible contagion, refraining from going for shopping, entertainment and social gatherings.

The South Korean government is widely expected to announce a supplementary budget this week for the second half as part of efforts to counter the slowing domestic demand caused by the MERS outbreak.

Large-cap shares ended mixed. The biggest auto parts maker Hyundai Mobis advanced 4.5 percent, and leading cosmetics maker Amore Pacific gained 2.3 percent. Market bellwether Samsung Electronics slid 1.4 percent, and the state-run power supplier Korea Electric Power Corp. dipped 1.3 percent.

The South Korean currency finished at 1,108.4 won against the greenback, down 3.8 won from Tuesday's close.

Bond prices ended mixed. Yields on the liquid three-year treasury notes added 1.1 basis points to 1.806 percent, but the return on the benchmark 10-year government bonds slid 1.1 basis points to 2.469 percent. Endi