Seoul shares end up 1.14 pct on retail buying

(ATTN: ADDS bond yields at bottom)
By Lee Youkyung
SEOUL, Feb. 9 (Yonhap) -- South Korean stocks closed 1.14 percent higher on
Tuesday as retail and institutional investors increased holdings of bank and
financial shares, analysts said. The local currency rose against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) advanced 17.7 points to
1,570.49, snapping a two-session losing streak. Volume was moderate at 418
million shares worth 4.1 trillion won (US$3.52 billion) with gainers leading
losers 453 to 343.
"Foreign investors reduced the size of net selling, while retailers and
institutions lent support," said Lim Dong-min, an analyst at KB Investment &
Securities. "Affiliates of Kumho Asiana Group surged as their shares have been
undervalued due to recent events."
Owners of the cash-strapped Kumho Asiana Group reached an agreement with
creditors to offer their stock holdings as part of the survival efforts, ending
speculation that the company may go under court protection, analysts said.
Kumho Industrial and Kumho Tire, which lost significant ground in the previous
session, both spiked by the daily limit of 15 percent, closing at 5,640 won and
3,530 won, respectively.
Bank and financial shares recouped losses from recent sessions on eased worries
about their exposure to Kumho-related issues. Top financial services company KB
Financial Group jumped 5.34 percent to 48,350 won while Woori Financial Holdings
rose 2.32 percent to 13,250 won.
Manufacturers of liquid-crystal-display (LCD) panels gained ground on
expectations for a tight panel supply. Samsung Electronics, the world's largest
maker of LCD and LCD TVs, finished 1.74 percent higher at 761,000 won while LG
Display, the world's No. 2 LCD maker, climbed 1.89 percent to 37,800 won.
Ending a three-session losing streak, the local currency closed at 1,163.80 won
to the greenback, up 8.10 won from Monday's close, as exporters unloaded U.S.
dollars ahead of Lunar New Year, dealers said.
Bond prices, which move inversely to yields, closed lower. The yield on the
benchmark three-year Treasury note added 0.01 percentage point to 4.27 percent,
and the return on five-year government bonds rose 0.02 percentage point to 4.82
percent.
ylee@yna.co.kr
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