Seoul shares end up 3.2 pct on foreign buying, won's gain

(ATTN: ADDS bond yields at bottom)
SEOUL, March 11 (Yonhap) -- South Korean stocks closed 3.23 percent higher
Wednesday as investor sentiment was bolstered by a foreign buying spree and the
local currency's strength to the dollar, analysts said.
The benchmark Korea Composite Stock Price Index (KOSPI) advanced 35.31 points to
1,127.51. Volume was moderate at 566.7 million shares worth 5.56 trillion won
(US$3.77 billion), with gainers outpacing losers 653 to 174.
"Sizable foreign buying and the won's strength lifted investor sentiment," said
Lee Sun-yup, an analyst at Goodmorning Shinhan Securities Co. "But it remains to
be seen whether the Seoul bourse will continue its upswing due to lingering
uncertainty about the depth of bad assets in the U.S. banking system."
Foreigners were net buyers of Seoul stocks for the second straight session,
snapping up a net 541 billion won worth of local stocks on the main bourse.
Most shares traded in positive territory, led by financial and tech shares.
KB Financial Group, the holding company of top lender Kookmin Bank, jumped 7.33
percent to 32,200 won and its rival Shinhan Financial Group gained 2.19 percent
to 23,300 won.
Market leader Samsung Electronics rose 4.17 percent to 525,000 won and chip giant
Hynix Semiconductor advanced 0.98 percent to 8,210 won.
Power monopoly Korea Electric Power soared 8.02 percent to 26,950 won and top
steelmaker POSCO gained 4.33 percent to 349,000 won.
The Korean currency ended at 1,471 won to the greenback, up 40.5 won from
Tuesday's close, as foreign investors increased their holdings of local stocks,
dealers said. The Korean unit rose as high as 1,465 won at one point in morning
trading, and has gained 6.59 percent against the dollar for the past four
sessions.
Bond prices, which move inversely to yields, closed lower. The return on
three-year Treasuries rose 0.07 percentage point to 3.69 percent and the
benchmark yield on five-year government bonds added 0.03 percentage point to 4.53
percent.
sooyeon@yna.co.kr
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