Seoul shares end 1.91 pct higher on won's gain

(ATTN: CORRECTS spelling of analyst's name in para 3; ADDS bond yields at bottom)
SEOUL, March 10 (Yonhap) -- South Korean stocks closed 1.91 percent higher
Tuesday as the local currency's strength against the U.S. dollar helped soothe
investor sentiment, sending financial shares higher, analysts said.
The benchmark Korea Composite Stock Price Index (KOSPI) advanced 20.47 points to
1,092.2. Volume was heavy at 604.4 million shares worth 4.76 trillion won
(US$3.15 billion), with gainers outpacing losers 529 to 283.
"The Seoul bourse gained strong momentum after the local currency sharply rose to
the dollar," said Kwak Joong-bo, an analyst at Hana Daetoo Securities Co.
"Financial and construction shares traded in positive territory."
After starting weaker, the Seoul bourse turned higher and extended earlier gains
on the back of the won's sharp gain and foreign investors' stock buying, analysts
said. Foreigners became net buyers of Seoul stocks for the first time in three
session, snapping up a net 174.7 billion won worth of local stocks on the main
bourse.
Financial shares jumped following gains in their rivals in U.S. markets and the
local currency's gain. Market watchers say the won's rise will help decrease
valuation losses related to foreign currency denominated assets or derivatives.
KB Financial Group, the holding company of top lender Kookmin Bank, jumped 11.73
percent to 30,000 won and its smaller rival Hana Financial Group soared the daily
limit of 15 percent to 19,050 won.
Leading builder Daewoo Engineering & Construction rose 4.73 percent to 8,630 won
and top steelmaker POSCO advanced 2.61 percent to 334,500 won.
But market leader Samsung Electronics shed 2.14 percent to 504,000 won and chip
giant Hynix Semiconductor fell 1.09 percent to 8,130 won.
The Korean currency ended at 1,511.5 won to the dollar, up 37.5 won from Monday's
close, as foreign investors increased their holdings of local stocks, dealers
said.
Bond prices, which move inversely to yields, closed higher. The return on
three-year Treasuries shed 0.04 percentage point to 3.62 percent and the
benchmark yield on five-year government bonds fell 0.11 percentage point to 4.5
percent.
sooyeon@yna.co.kr
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