Seoul shares rise 2.15 pct on builder advances

(ATTN: RECASTS headline, first 4 paras; ADDS bond yields at bottom)
SEOUL, Nov. 4 (Yonhap) -- South Korean stocks jumped 2.15 percent Tuesday as investors bought builders and other large caps expected to benefit from the government's economic stimulus package, analysts said. The local currency fell against the U.S. dollar.

After a roller-coaster session, the benchmark Korea Composite Stock Price Index
(KOSPI) closed up 24.27 points at 1,153.35. Volume was heavy at 598.16 million
shares worth 6.71 trillion won (US$5.21 billion), with gainers outpacing losers
612 to 246.
This marked the fourth consecutive session of advance since the central bank
announced a $30 billion currency swap deal with the U.S. Federal Reserve on
Thursday.
"The market was apparently buoyed by the stimulus measures, but some investors,
burdened by recent rallies, cashed 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.
Bond prices, which move inversely to yields, ended sharply higher. The return on
three-year Treasuries plunged 0.03 percentage point to 4.68 percent and the
benchmark yield on five-year government bonds also fell 0.04 percentage point to
4.94 percent.
kokobj@yna.co.kr
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