Seoul shares jump 3.27 pct on global anti-recession steps

(ATTN: ADDS bond yields at bottom)
SEOUL, Nov. 27 (Yonhap) -- South Korean stocks surged 3.27 percent Thursday as investors bought banks, construction and other beaten-down blue chips, emboldened by ongoing global efforts to fight a worldwide recession, analyst said. The local currency rose against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) climbed 33.7 points to
1,063.48, marking the third consecutive day of advance. Volume was heavy at
555.87 million shares worth 5.87 trillion won (US$3.97 billion) with gainers
outnumbered losers 646 to 193.
"Investor jitters seemed to be eased following U.S. market rallies, driven by
stepped-up global efforts to fight an economic recession," said Rhoo Yong-seok an
analyst at Hyundai Securities. "Foreigners continued their net buying of local
shares, helping the index gain more momentum."
Foreigners snapped up a net 225.24 billion worth of local shares, extending their
net buying to two sessions. Institutions bought 238.54 billion worth of equities,
while retailers unloaded stocks valued at around 448 billion.
Market sentiment was lifted recently on intensifying global efforts to fight a
worldwide recession in the wake of the financial turmoil, with the European Union
announcing a large-scale economic stimulus package and China cutting its key
interest rate the previous day.
On Wednesday, U.S. stocks closed up on renewed hopes that the government will
bail out struggling automakers. The Dow Jones industrial average jumped 2.91
percent, rising for a fourth straight session, while the tech-dominated Nasdaq
composite index rose 4.6 percent.
Major banks and brokerages drove the local index higher. Woori Finance Holdings,
the country's top financial services firm by market value, jumped 14.67 percent
to 6,800 won and fifth-largest Korea Exchange Bank surged by its daily limit of
14.98 percent for two days in a row to 7,140 won.
Construction shares continued their rallies for the second consecutive day on
optimism that industry-wide restructuring will lead to fast recovery. Building
giant Daewoo Engineering & Construction advanced 5.19 percent to 7,900 won and
smaller Kumho Industry surged 4.44 percent to close at 11,750 won.
Auto shares added to the upward move with industry leader Hyundai Motors closing
up 4.59 percent to 41,000 won.
Telecoms, however, closed sharply down amid bleak outlooks for their business
conditions as investors locked in profits from their relatively strong
performances. Top mobile carrier SK Telecom lost 1.59 percent to 215,500 won,
while second-ranked KTF plunged 5.92 percent to 27,800 won.
The local currency closed at 1,476 won to the U.S. dollar, up 2.1 won from
Wednesday's close. The advance followed news reports that South Korea posted a
record-high current account surplus in October and that the central bank will
soon borrow US$4 billion from the Federal Reserve under a currency swap deal
aimed at providing dollars to cash-strapped local banks.
Bond prices, which move inversely to yields, closed higher. The return on
three-year Treasuries fell 0.02 percentage point to 4.86 percent and the
benchmark yield on five-year government bonds lost 0.01 percentage point to 5.03
percent.
kokobj@yna.co.kr
(END)