Seoul shares soar 5.57 pct on bargain hunting

SEOUL, Oct. 28 (Yonhap) -- South Korean stocks ended 5.57 percent higher Tuesday as institutions went bargain hunting after recent plunges, analysts said.

The
local currency tumbled against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) rose 52.71 points to
999.16 after opening over 3 percent lower on overnight U.S. losses. Volume was
heavy at 642.6 million shares worth 6.18 trillion won (US$4.2 billion), with
gainers outpacing losers 624 to 230.
"Institutions snapped up exporters and other blue-chip bargains, taking a cue
from their recent sharp declines," said Bae Sung-young, an analyst at Hyundai
Securities.
The KOSPI has more lost more than half its value from a historic high of 2,085
points in Nov. 2007, largely on selling by offshore investors. Foreign selling
amounted to some 34.3 trillion won so far this year, according to the Korea
Exchange, the bourse operator.
Exporters led the overall gains, with steel and machinery stocks chalking up
strong gains. Leading steelmaker POSCO soared 13.69 percent to 299,000 won and
top power generator producer Doosan Heavy Industries rose to a daily limit of 15
percent to end at 46,000 won.
Technology and automaking shares also added momentum. Market heavyweight Samsung
Electronics climbed 5.82 percent to 463,500 won and smaller chip rival Hynix
Semiconductor soared 14.9 percent to 9,330 won. Leading automaker Hyundai Motor
rallied 12.6 percent to 58,100 won.
Telecoms, however, fell hard amid the overall bullish market. SK Telecom, the
nation's top wireless carrier, plunged 6.72 percent to 187,500 won after
announcing disappointing third quarter earnings, while its rival KTF plunged
13.67 percent after its former president, now being held in custody, admitted to
receiving kickbacks from suppliers during a court hearing.
On Monday, U.S. stocks took a plunge on weak earnings outlooks and continued
market jitters. The Dow Jones industrial average lost 2.42 percent to a five-year
low and the tech-dominated Nasdaq composite index also fell 2.97 percent.
The local currency continued its sharp devaluation against the dollar as foreign
investors continued to reduce their exposure from the local stock markets. The
won closed at 1,467.8 won to the U.S. dollar, down 25.3 won from Monday's close.
Bond prices, which move inversely to yields, fell sharply. The return on
three-year Treasuries rose 0.04 percentage point to 4.56 percent and the
benchmark yield on five-year government bonds climbed 0.08 percentage point to
4.7 percent.