Seoul shares end 2.15 pct higher on tech, financial gains

(ATTN: ADDS bond yields at bottom)
SEOUL, Jan. 16 (Yonhap) -- South Korean stocks closed 2.15 percent higher Friday
as investors snapped up tech and financial shares following a plunge in the key
index the previous session, analysts said. The local currency rose against the
U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) advanced 23.86 points to
1,135.2. Volume was moderate at 331.2 million shares worth 4.03 trillion won
(US$2.95 billion), with gainers outpacing losers 579 to 235.
"The Seoul bourse rebounded in reaction to the previous day's steep losses. The
news that Bank of America will receive fresh capital also helped lift investor
sentiment," said Lee Seung-woo, an analyst at Daewoo Securities Co.
"But it is doubtful that the upward momentum will continue. As it bounces between
concerns over the economic slump and hopes for stimulus packages, the key index
is forecast to trade in a narrow range."
The KOSPI opened higher mirroring overnight gains in U.S. markets, and extended
earlier gains following reports that Bank of America will receive financial aid
from the government.
The U.S. government said Thursday it will inject $20 billion in capital into the
lender and provide a state guarantee against $118 billion in bad assets to help
the bank absorb Merrill Lynch & Co.
Tech blue chips gained ground on institutional buying. Chipmaker Hynix
Semiconductor rose 5.78 percent to 6,950 won and flat panel giant LG Display
gained 5.7 percent to 24,100 won. Reversing earlier losses, market leader Samsung
Electronics added 2.07 percent to 469,000 won.
Hanwha, the preferred bidder on Daewoo Shipbuilding & Marine Engineering, jumped
13.32 percent to 26,800 won due to the group's likely failure in purchasing the
shipbuilder, which is expected to clear up Hanwha's business uncertainties. On
Thursday, state-run Korea Development Bank rejected a call by Hanwha for the
lender to partially sell its stake in the shipyard.
Financial issues also gained momentum. In early trading, bank shares lost ground
after Moody's Investors Service said it is reviewing a possible ratings downgrade
of 10 South Korean banks. KB Financial Group, the holding company of Kookmin
Bank, inched up 0.43 percent to 35,350 won and smaller rival Hana Financial Group
rose 2.2 percent to 20,950 won.
The local currency ended at 1,358 won to the dollar, up 34 won from Thursday's
close, as exporters unloaded the greenback and local stock prices rose, dealers
said.
Bond prices, which move inversely to yields, closed lower. The return on
three-year Treasuries gained 0.05 percentage point to 3.61 percent and the
benchmark yield on five-year government bonds rose 0.07 percentage point to 4.22
percent.
sooyeon@yna.co.kr
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