Seoul shares end 0.25 pct higher on auto gains

SEOUL, Feb. 1 (Yonhap) -- South Korean stocks closed 0.25 percent higher Monday
on market expectations that a massive recall of vehicles by Toyota Motor Co. will
benefit Korean automakers, analysts said. The won fell against the U.S. dollar.

After range-bound trading, the benchmark Korea Composite Stock Price Index
(KOSPI) gained 4.01 points to 1,606.44. Volume was moderate at 376.8 million
shares worth 5.04 trillion won (US$4.3 billion) with gainers outpacing losers 415
to 381.
"Solid gains of automakers led the market's rise, outweighing tech falls," said
Bae Sung-young, an analyst at Hyundai Securities. "The Seoul bourse managed to
trade higher as investors already priced in negative news including China's
tightening fears."
Carmakers traded in positive territory on expectations that a massive recall of
vehicles by Toyota Motor Co. will help Korean automakers increase their market
share in the U.S. Leading carmaker Hyundai Motor advanced 2.65 percent to 116,000
won and its affiliate Kia Motors jumped 5.63 percent to 20,650 won.
Tech blue chips closed mixed. Market leader Samsung Electronics declined 0.89
percent to 777,000 won.
Reversing earlier losses, chip giant Hynix Semiconductor rose 1.54 percent to
23,100 won. It declined as much as 4.4 percent at one point after its creditors
said Friday they drew no bidders for a 28.07 percent stake in the chipmaker by
the Jan. 29 deadline. Earlier in the day, the creditors said they will extend the
deadline until Feb. 12.
Bank issues climbed ahead of the announcement of their fourth-quarter earnings.
Top financial services company KB Financial Group rose 2.57 percent to 51,900 won
and its rival Shinhan Financial Group jumped 4.27 percent to 42,750 won.
The local currency ended at 1,169.50 won to the U.S. dollar, down 7.70 won from
Friday's close as offshore investors dumped local stocks, dealers said. The won
also came under downward pressure on reports that South Korea logged its first
trade deficit in 12 months in January, they said. South Korea posted a trade
deficit of $470 million in January on a surge in energy imports.
sooyeon@yna.co.kr
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