(LEAD) Seoul shares end 0.59 pct higher on steel, builder gains

(ATTN: ADDS more info in para 8; ADDS bond yields at bottom)
SEOUL, Jan. 18 (Yonhap) -- South Korean stocks closed 0.59 percent higher Monday
as investors snapped up steelmakers, builders and tech shares, analysts said. The
local currency fell against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) advanced 9.98 points to
1,711.78. Volume was moderate at 415.3 million shares worth 6.23 trillion won
(US$5.54 billion), with losers outpacing gainers 453 to 317.
"Despite the tumble in U.S. stocks last Friday, optimism prevailed on the Seoul
bourse," said Kim Sung-joo, an analyst at Daewoo Securities.
"Foreign and retail investors lead the overall gains, keeping the key index over
the 1,700 mark for a second session," Kim said.
Foreign and retail investors remained net buyers of local stocks on the main
bourse, lending support to the key index, but the KOSPI's gains were pulled down
during the session as institutional investors went into selling mode.
Large caps including tech and steelmakers gained ground on the back of earnings
expectations. Market leader Samsung Electronics rose 0.12 percent to 834,000 won
and local rival LG Electronics Semiconductor climbed 2.27 percent to 112,500 won.
Steelmakers and builders traded in positive territory as overseas sales were
expected to grow this year. Top steelmaker POSCO climbed 1.01 percent to 598,000
won and Doosan Heavy Industries Co., South Korea's leading power equipment maker,
jumped 7.85 percent to 93,400 won.
Financial issues finished lower, mirroring drops in their peers in the U.S.
market in the last session. Top financial firm KB Financial Group slid 2.44
percent to 55,900 won and Korea Exchange Bank fell 2.53 percent to 13,500 won.
U.S. markets closed lower Friday, with earnings reports from J.P Morgan and Intel
failing to live up to investors' expectations. The Dow Jones industrial average
rose 0.9 percent.
The local currency ended at 1,124.50 won against the greenback, down 1.50 won
from Friday's close, as exporters sold the local currency, dealers said.
Bond prices, which move inversely to yields, closed lower. The yield on the
benchmark three-year Treasury note added 0.04 percentage point to 4.28 percent,
and the return on five-year government bonds rose 0.04 percentage point to 4.84
percent.
ygkim@yna.co.kr