Seoul stocks close up 0.94 pct on upbeat earnings outlooks

(ATTN: ADDS bond yields at bottom)
SEOUL, April 23 (Yonhap) -- South Korean stocks closed up 0.94 percent Thursday
as investors picked up tech, auto and other large-cap shares thanks to improved
earnings outlooks and the government's drive to help struggling companies. The
local currency inched up against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) rose 12.78 points to
1,368.8, marking four straight days of advances. Volume was heavy at 736.48
million shares worth 8.74 trillion won (US$6.5 billion), with gainers outpacing
losers 420 to 394.
"Despite volatile early trading, the index ended higher as foreign investors
expanded holdings in tech, auto and other large-cap shares on hopes that
corporate earnings will improve," said Lee Sun-yup, an analyst at Goodmorning
Shinhan Securities.
Tech bellwether Samsung Electronics jumped 2.96 percent to 627,000 won on market
expectations that it will announce "surprise" first-quarter earnings on Friday.
Smaller LG Electronics rose 0.91 percent to 111,000 won.
Auto issues added to the upswings. Hyundai Motor surged 3.18 percent to 68,100
won even after posting a 43-percent decline in its first-quarter earnings. The
advance is attributed to hopes that the nation's largest carmaker will see a
turnaround in the second quarter, experts say. Its affiliate and No. 2 carmaker
Kia Motors rose 5.42 percent to 10,700 won.
Shipping lines also gained ground after the government unveiled a plan to launch
a 4-trillion won fund to purchase used vessels from struggling companies. No. 1
shipper Hanjin Shipping jumped 5.14 percent to 22,500 won and Korea Line Corp.
surged 11.85 percent to 84,000 won.
Banks, however, ended in negative territory. KB Financial Group, which controls
top lender Kookmin Bank, fell 0.79 percent to 37,450 won and Woori Finance
Holdings, the parent for Woori Bank, lost 3.04 percent to 9,260 won.
The local currency finished at 1,348 won to the dollar, up 0.5 won from
Wednesday's close, as stock advances eased jitters over financial market
instability, dealers said.
Bond prices, which move inversely to yields, closed higher. The return on
three-year Treasuries fell 0.02 percentage point to 3.70 percent, while the
benchmark yield on five-year government bonds ended flat at 4.32 percent.
kokobj@yna.co.kr
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