Seoul stocks end up 2.44 pct on eased financial woes

SEOUL, March 23 (Yonhap) -- South Korean stocks closed up 2.44 percent Monday as investors picked up large-cap shares on eased anxiety over the economy and financial markets, analysts said. The local currency jumped to a one-month high against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) surged 28.56 points to
1,199.5, the highest since February 9 when it stayed above the 1,200 mark. Volume
was moderate at 454.48 million shares worth 4.6 trillion won (US$3.3 billion),
with winners outpacing losers 656 to 168.
"Investors seemed to take comfort in U.S. efforts to purchase toxic assets in its
struggling financial sector, which helped ease market jitters and sent major
Asian markets higher," said Choi Soon-ho, an analyst at Eugene Investment &
Securities.
"Market sentiment was also lifted by the Korean government's plan push for a
large-scale extra budget," he added.
Foreign media reports said that Washington is eying establishing a state-run
entity which will help purchase as much as $1 trillion in banks' bad assets.
Observers say that the detailed plan will likely be announced earlier this week.
The Seoul government said earlier in the day that it has reached a tentative
agreement with ruling party lawmakers on a 28.9 trillion won extra budget, mostly
aimed at creating jobs and offering help to low-income people. The formal
announcement will be made on Tuesday.
Most shares gained significant ground, with banking shares driving the market
higher. Woori Finance Holdings jumped 4.18 percent to 7,470 won, with Hana
Financial Group gaining 7.4 percent to 22,500 won.
Steelmakers and shipyards were also among the brisk performers. Top steelmaker
POSCO closed up 3.36 percent at 369,000 won and leading shipyard Hyundai Heavy
Industries advanced 5.45 percent to 203,000 won.
Telecom shares, however, ended lower, with fixed-line telephony giant KT falling
1.25 percent to 39,350 won. No. 1 mobile carrier SK Telecom also declined 0.53
percent to close at 187,000 won.
The local currency ended at 1,391.6 won against the U.S. dollar, up 20.9 won from
Friday's close, the highest since Feb. 10. Dealers said a bullish run on the
local stock market helped ease financial woes lingering on the currency market.
The Korean currency rose as high as 1,390 won to the dollar at one point. Its
value has declined more than 9 percent against the dollar this year.
"Overall sentiment surrounding the local foreign exchange market seems to have
been soothed in recent sessions. The country's trade balance is improving and
offshore investors' bets on the won's sharp weakness abated," said Jeon Seung-ji,
a currency analyst at Samsung Futures Co., adding that the local currency may
trade between the upper range of 1,300 and 1,450 for the time being.
Bond prices, which move inversely to yields, closed lower. The return on
three-year Treasuries rose 0.06 percentage point to 3.55 percent and the
benchmark yield on five-year government bonds gained 0.1 percentage point to 4.28
percent.