Seoul shares jump 4.7 pct on financial gains

SEOUL, Nov. 26 (Yonhap) -- South Korean stocks ended 4.72 percent higher Wednesday as investors snapped up beaten-down financial shares on the U.S. Federal Reserve's rescue plan, analysts said. The local currency rose against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) climbed 46.46 points to
1,029.78. Volume was moderate at 508 million shares worth 5.07 trillion won
(US$3.43 billion). Gainers outnumbered losers 651 to 189.
"A series of news like a lifeline for Citigroup and the Fed's fresh rescue plan
generally lifted investor sentiment," said Lee Kyoung-su, an analyst at Taurus
Investment & Securities Co.
Foreign investors snapped up a net 121.7 billion won worth of local stocks on the
Seoul bourse, becoming net buyers for the first time in four sessions. The Fed
unveiled a US$800 billion plan on Tuesday to buy mortgage-backed assets and help
boost lending for consumers.
U.S. stocks closed mixed Tuesday as investors were heartened by the Fed's plan,
but dismal economic data weakened sentiment. The Dow Jones industrial average
added 0.43 percent while the tech-dominated Nasdaq composite index shed 0.5
percent.
But analysts said it remains to be seen whether the local stock market will
likely continue its gain further amid mounting concerns over a global economic
recession.
"A batch of U.S. economic data reinforced concerns over a global recession. This
may limit a possible upturn of the Seoul stock market," said Bae Sung-young, an
analyst at Hyundai Securities Co.
Financial shares, led by bank and securities issues, were powered up by the Fed's
plan. Analysts also said the bank gain came as the country's top financial
regulator said that now is not the time for the government to pour public funds
into local banks, as the difficulties they face do not warrant an overhaul.
Woori Finance Holdings, the country's top financial services firm, jumped the
daily limit of 15 percent to 5,930 won and KB Financial Group, the holding
company of Kookmin Bank, also soared 15 percent to 27,600 won. Leading brokerage
Daewoo Securities gained 14.89 percent to 9,570 won.
But No. 2 shipping line Hyundai Merchant Marine lost 1.29 percent to 34,400 won
after North Korea said on Monday that strating next week, it will suspend a
cross-boarder train service and selectively expel South Koreans working at a
joint industrial complex in the city of Kaesong. Hyundai Merchant has a 36.9
percent stake in Hyundai Asan, an arm of Hyundai Group, which engages in
inter-Korean economic projects.
The local currency closed at 1,478.10 won to the dollar, up 24.2 won from
Tuesday's close, as offshore investors snapped up local stocks, dealers said.
Bond prices, which move inversely to yields, closed higher. The return on
three-year Treasuries fell 0.17 percentage point to 4.88 percent and the
benchmark yield on five-year government bonds lost 0.16 percentage point to 5.04
percent.