Seoul stocks end up 2.99 pct on massive foreign buying

(ATTN: ADDS bond yields at bottom)
SEOUL, May 19 (Yonhap) -- South Korean shares closed 2.99 percent higher Tuesday
as investors picked up steel, shipyard and financial shares on eased economic
jitters following Wall Street rallies, analysts said. The local currency rose
against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) jumped 41.53 points to
1,428.21, surpassing the 1,400 mark for the first time in about a week. Volume
was heavy at 759.78 million shares worth 7.54 trillion won (US$6.03 billion),
with gainers outpacing losers 639 to 194.
"Overnight rallies in U.S. stocks offered a boost, prompting foreigners to scoop
up large-cap shares," said Choi Soon-ho, an analyst at Eugene Investment &
Securities. "Investors also expanded holdings on expectations economic indicators
to be unveiled by the U.S. this week will point to a rebounding economy."
Foreigners purchased local shares more than they sold for a third straight day.
Their net purchase amounted to over 400 billion won, while retailers and
institutions remained net sellers.
Steel shares surged on foreign buying, which sent market leader POSCO 4.61
percent higher to close at 420,000 won. Smaller Hyundai Steel gained 3.26 percent
to 63,300 won.
Shipyard and financial shares augmented the upward momentum.
Leading shipbuilder Hyundai Heavy Industries advanced 3.49 percent to 237,500 won
and Samsung Heavy Industries jumped 5.15 percent to 30,650 won. Top brokerage
Mirae Asset Securities soared 7.26 percent to 81,300 won.
Carmakers continued to rally on optimism eased economic woes and struggling
rivals in the U.S. might translate into more demand. No. 1 carmaker Hyundai Motor
gained 4.05 percent to 66,800 won, while second-ranked Kia Motors closed up 3.05
percent at 13,500 won.
On Monday, Wall Street rebounded on signs that consumer spending is stabilizing.
The Dow Jones industrial average jumped 2.85 percent and the Nasdaq composite
index advanced 3.11 percent.
The local currency ended at 1,249.5 won against the dollar, up 10 won from
Monday's close, as stock rallies and eased financial instability encouraged
investors to take riskier bets, dealers said.
Bond prices, which move inversely to yields, closed sharply lower. The return on
three-year Treasuries surged 0.11 percentage point to 3.86 percent, and the
benchmark yield on five-year government bonds rose 0.12 percentage point to 4.53
percent.
kokobj@yna.co.kr
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