Seoul shares rise for 4th day on builder advances

SEOUL, Nov. 4 (Yonhap) -- South Korean stocks jumped 2.15 percent Tuesday in a highly volatile session as investors bought builders and other large-cap shares expected to benefit from recent government economic stimulus measures, analysts said. The local currency fell against the greenback.

The benchmark Korea Composite Stock Price Index (KOSPI) closed up 24.27 points at
1,153.35 after fluctuating up and down several times throughout the day. This
marked the fourth consecutive day of market gains since the central bank
announced a US$30 billion currency swap deal with the United States on Thursday.
Volume was heavy at 598.16 million shares worth 6.71 trillion won ($5.21
billion), with gainers outpacing losers 612 to 246.
"The market seemed to be positively responding to the government's recent
measures to stimulate the economy but investors must be feeling burdened from
rallies in recent sessions, causing some to cash out profits," said Kim
Jung-hyun, an analyst at Goodmorning Shinhan Securities. "Builders drove the
market advance but massive foreign selling continued to drag."
On Monday, the Finance Ministry unveiled a sweeping economic stimulus package
worth 14 trillion won (US$10.76 billion), which includes a 10 trillion won budget
increase for next year and diverse deregulatory moves for the slumping
construction sector.
The package came in addition to 19 trillion won worth of tax cuts unveiled
earlier, bringing the total for economic relief measures to 33 trillion won --
around 3.7 percent of the nation's gross domestic product.
Builders were among the chief beneficiaries of the government action. Daewoo
Engineering & Construction jumped by its daily limit of 14.84 percent to 10,450
won and Kumho Industry also jumped by its daily limit to 13,950 won.
Financial shares added to the upward move. Woori Finance Holdings soared 14.94
percent, its daily limit, to 8,230 won, while Shinhan Financial Group gained
11.01 percent to 36,800 won.
Steel and tech exporters, however, lost significant ground as investors cashed in
profits from recent rallies. Top steelmaker POSCO plunged 4.16 percent to 346,000
won and tech heavyweight LG Electronics lost 2.28 percent to 94,100 won.
The Korean currency ended at 1,288 won to the greenback, down 26 won from
Monday's close, on renewed concerns over the local foreign capital market that
prompted investors to pick up dollars, dealers said.
kokobj@yna.co.kr
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