Seoul shares surge 3.15 pct on Citigroup report

(ATTN: ADDS bond yields at bottom)
SEOUL, Feb. 23 (Yonhap) -- South Korean stocks closed 3.15 percent higher Monday
as investors picked up beaten-down shares following a report that the U.S.
government might increase its stakes in the troubled banking giant Citigroup,
easing concerns over a looming financial crisis. The won jumped against the U.S.
dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) jumped 33.6 points to
1,099.55, ending its five-day losing streak. Volume was moderate at 389 million
shares worth 3.78 trillion won (US$2.45 billion), with gainers outpacing losers
591 to 229.
"Stocks closed sharply higher after a report that the U.S. government is in
negotiations to increase its stakes in Citigroup," said Kang Hyun-chul, an
analyst at Woori Investment & Securities. "That eased jitters over a financial
crisis, prompting investors to buy shares which fell excessively in recent
bearish sessions."
Most large-cap shares ended in positive territory, with shipbuilders and shipping
issues gaining marked ground on expectations China will soon unveil economic
stimulus measures that are expected to increase demand for Korean goods.
Top shipyard Hyundai Heavy Industries jumped 4.68 percent to 190,000 won, while
second-ranked Samsung Heavy Industries surged 6.14 percent to 23,350 won.
Shipping giant Hanjin Shipping rose 7.47 percent to 16,550 won.
Tech exporters added to the bullish mood. Hynix Semiconductor, the world's
second-largest computer memory-chip maker, soared 11.8 percent to close at 8,810
won. Tech bellwether Samsung Electronics also jumped 3.74 percent to 485,000 won.

Financial shares, which got off to a weak start, rebounded. KB Financial Group
added 4.02 percent to 28,450 won, while Hana Financial Group rose 7.78 percent to
18,000 won.
The local currency ended at 1,489 won to the dollar, up 17 won from Friday's
close, on speculation the government might make a dollar-selling intervention to
support the won's value, dealers said.
Bond prices, which move inversely to yields, jumped. The return on three-year
Treasuries plunged 0.09 percentage point to 3.83 percent and the benchmark yield
on five-year government bonds fell 0.13 percentage point to 4.64 percent.
kokobj@yna.co.kr
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