Seoul shares end up 0.78 pct on finance, builder gains

(ATTN: ADDS bond yields at bottom)
SEOUL, Feb. 27 (Yonhap) -- South Korean stocks closed 0.78 percent higher in a
volatile session Friday as investors picked up recently beaten-down finance and
construction shares, analysts said. The local currency fell to a near 11-year low
against the greenback.
The benchmark Korea Composite Stock Price Index (KOSPI) rose 8.24 points to
1,063.03. Volume was heavy at 492 million shares worth 3.5 trillion won (US$2.3
billion), with winners outpacing losers 530 to 253.
"Financials and builders rebounded from their recent setbacks, helping the index
end in positive territory," said Bae Sung-young, an analyst at Hyundai
Securities. "But the upward move lost its strength late in the afternoon as the
volatility in the currency market increased."
Stocks got off to a weak start following overnight declines in U.S. markets, but
reversed course, rising around 2 percent at one point during intra-day trading.
The local currency's plunge, however, dented investor sentiment, causing the
market to pare much of its earlier gains.
Banking and building issues drove the market higher. KB Financial Group jumped
5.76 percent to 29,400 won, while Shinhan Financial Group surged 9.39 percent to
23,300 won. Construction leader Daewoo Engineering & Construction ended 1.9
percent higher at 8,560 won.
Tech issues were among the sharp gainers. Flat-panel making giant LG Display
jumped 3.87 percent to 25,500 won after plunging the previous day on reports that
its largest shareholder Philips might sell its holdings. Chipmaker Hynix
Semiconductor rose 3.6 percent to 8,640 won.
Telecoms, however, ended in negative territory, weighing on the market. KT closed
down 1.71 percent to 37,450 won, ending its rallies sparked from the endorsement
by the nation's anti-trust watchdog on its takeover of mobile affiliate KTF.
The local currency ended at 1,534 won to the U.S. dollar, down 16.5 won from
Thursday's close. This marked a near 11-year low against the greenback, with its
value falling over 17 percent so far this year amid jitters over a dollar
shortage.
Bond prices, which move inversely to yields, closed up. The return on three-year
Treasuries plunged 0.06 percentage point to 3.82 percent and the benchmark yield
on five-year government bonds fell 0.01 percentage point to 4.57 percent.
kokobj@yna.co.kr
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