Seoul shares end up 0.86 pct on shipbuilders, tech gains

(ATTN: ADDS bond yields at bottom; ADDS more detail in para 5)
By Lee Youkyung
SEOUL, Jan. 14 (Yonhap) -- South Korean stocks closed 0.86 percent higher
Thursday as investors brushed off concerns from China's credit-tightening
measures and scooped up shares of shipbuilders and tech chips, analysts said. The
local currency gained against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) advanced 14.36 points to
1,685.77. Volume was moderate at 428 million shares worth 6.11 trillion won
(US$5.45 billion) with gainers leading losers 421 to 356.
"Investors bet on tech issues ahead of the release of Intel Corp.'s earnings
report later in the evening," said Choi Chang-ho, an analyst at Shinhan
Investment Corp. "Chinese stocks traded in positive territory and U.S. markets
gained overnight, helping ease investors' concerns about China's tightening of
its monetary policy."
On Tuesday, the People's Bank of China raised the reserve requirements for local
banks in a bid to stem inflation, but investors shrugged off initial jitters,
betting that China may take more time to raise its benchmark interest rates,
analysts said.
Top shipbuilder Hyundai Heavy Industries soared 5.97 percent to 204,000 won as
investors hunted for bargains a day after the shares were beaten down by China's
rate increase fears.
Memory chipmakers finished higher on a recent upturn in benchmark DRAM chip
prices. Market heavyweight Samsung Electronics climbed 3.76 percent to 827,000
won while the world's second-largest memory chip maker Hynix Semiconductor rose
5.82 percent to 25,450 won.
LG Display, the world's second-largest maker of liquid-crystal-display panels,
jumped 5.35 percent to 40,400 won on a brokerage's note that its first-quarter
profits will rebound.
The world's fourth-largest steelmaker POSCO however, fell 0.67 percent to 592,000
won as investors took profits ahead of imminent earnings reports slated to be
released after the closing bell.
The local currency closed at 1,121.10 won to the greenback, up 4.40 won from
Wednesday's close, as offshore investors bet on risky assets on expectation that
China's measure to curb bank lending will not hinder its growth, dealers said.
Bond prices, which move inversely to yields, closed higher. The yield on the
benchmark three-year Treasury note shed 0.03 percentage point to 4.23 percent,
and the return on five-year government bonds fell 0.03 percentage point to 4.78
percent.
ylee@yna.co.kr
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