Seoul shares rise on won's decline

SEOUL, Oct. 7 (Yonhap) -- South Korean stocks rose slightly Tuesday on hopes that exporting companies would benefit from a weaker won, analysts said. The local currency tumbled against the greenback.

Recovering from a fall of over 2 percent in morning trading, the benchmark Korea
Composite Stock Price Index (KOSPI) added 7.35 points, or 0.54 percent, to
1,366.1. Volume was moderate at 343 million shares worth 4.65 trillion won
(US$3.49 billion), with losers outpacing gainers 526 to 281.
"Export blue chips, on the back of the won's sharp loss, provided a long-waited
lift to the KOSPI," said Lim Dong-min, an analyst at Dongbu Securities.
The South Korean won closed at 1,328.1 won to the dollar, plunging 59.1 won from
Monday's close and reaching its lowest level since 2002 as offshore investors
snapped up the dollar due to growing concerns over volatility in the financial
markets, according to dealers.
A weaker won makes local products cheaper abroad.
The key index added further ground after the Reserve Bank of Australia cut its
interest rates by 100 basis points during the session, more than double what was
expected, raising hopes for a similar move from other financial authorities
around the world, according to Lim.
Export-oriented stocks led overall gains. Samsung Electronics, the world's
largest computer memory chip maker, gained 2.71 percent to end at 531,000 won and
its home appliance rival LG Electronics also climbed 3.9 percent to 106,500 won.
Top automaker Hyundai Motor rose 2.41 percent to 72,100 won.
Construction and steel shares were also buoyed. Daewoo Engineering & Construction
soared 5.71 percent to 12,950 won and steel giant POSCO gained 0.91 percent to
387,000 won.
Retailers, however, lost ground on fears that an economic slowdown could bring
down consumer demand. Shinsegae shed 0.57 percent to end at 523,000 won and
Hyundai Department Store slumped 5.55 percent to 81,700 won.
odissy@yna.co.kr
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