Seoul stocks end up 0.95 pct on tech, shipbuilder gains

By Lee Youkyung
SEOUL, Jan. 15 (Yonhap) -- South Korean shares closed 0.95 percent higher Friday
as foreign investors scooped up shares of technology companies and shipbuilders
on a robust earnings outlook and merger expectation, analysts said. The local
currency fell against the U.S. dollar.

Extending its winning streak through a second day, the benchmark Korea Composite
Stock Price Index (KOSPI) advanced 16.03 points to 1,701.80. Volume was moderate
at 410 million shares worth 6.38 trillion won (US$5.68 billion) with gainers
leading losers 462 to 314.
"Intel Corp.'s earnings beat market expectations, winning more interest for local
tech shares," said Kim Hyoung-ryoul, an analyst at NH Investment & Securities.
"The market seems to have dispelled jitters from earlier this week regarding the
steep appreciation of the won and China's reserve requirement increase."
Expectations that rising benchmark memory chip prices will improve earnings
fueled rallies among memory chipmakers. Market heavyweight Samsung Electronics
rose 1.81 percent to 842,000 won and Hynix Semiconductor, the world's
second-largest memory chipmaker, added 2.55 percent to 26,100 won.
Shipbuilder and machinery shares finished sharply higher on speculation over a
number of mergers and acquisitions and robust earnings outlooks. Daewoo
Shipbuilding & Marine Engineering shot up by the daily limit of 14.99 percent to
22,250 won, as top steelmaker POSCO confirmed its interest in taking over the
shipyard in a meeting with investors.
Doosan Infracore, a leading construction equipment maker, spiked 12.3 percent to
21,000 won on speculation that its fourth-quarter earnings exceeded market
expectation.
Top shipbuilder Hyundai Heavy Industries climbed 6.37 percent to 217,000 won and
its smaller rival Samsung Heavy Industries advanced 4.04 percent to 27,050 won.
The local currency closed at 1,123.00 won to the greenback, down 1.90 won from
Thursday's close, as strong earnings by Intel halted sell-offs of the dollar,
dealers said. Offshore investors were cautious over potential government
intervention, slowing purchases of the local currency, they added.
ylee@yna.co.kr
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