(LEAD) Seoul stocks end 2.21 pct higher on bargain hunting

(ATTN: ADDS bond yields at bottom)
SEOUL, May 28 (Yonhap) -- South Korean stocks closed 2.21 percent higher Thursday
after bargain hunting outweighed North Korean nuclear jitters, analysts said. The
local currency rose against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) climbed 30.15 points to
1,392.17. Volume was heavy at 609.91 million shares worth 6.86 trillion won
(US$5.5 billion), with losers outpacing gainers 467 to 364.
After choppy early trading, the key index gathered upward momentum as
institutional and foreign investors hunted for beaten-down shares, analysts said.
"The key index was boosted by strong buying among institutional and foreign
investors who hunted for bargains after five-days of decline," said Lee
Kyoung-soo, an analyst at Taurus Securities.
Investors almost shrugged off North Korean nuclear risks, which had plagued the
market during the past three sessions, Lee said.
Market heavyweight tech firms led the bullish trading. Samsung Electronics soared
4.49 percent to 559,000 won on news the memory-chip giant renewed a licensing
contract with U.S. firm SanDisk.
Smaller rival LG Electronics also jumped 5.75 percent to 119,500 won, boosted by
upbeat earnings predictions for the second quarter.
Shippers gather substantial ground thanks to improving sea freight rates. Top
container carrier Hanjin Shipping spiked 7.26 percent to 19,950 won and No.1 bulk
shipper STX Pan Ocean surged 11.02 percent to end at 13,100 won.
Buoyed by General Motors Corp.'s possible bankruptcy, top carmaker Hyundai gained
5.77 percent to 67,800 won with its affiliate Kia Motors climbing 5.63 percent to
12,200 won.
But KB Financial Group, the holding firm of top lender Kookmin Bank, declined
2.92 percent to 41,600 on market speculation that the financial firm is moving to
raise money through a share offering.
The local currency ended at 1,256.9 won against the dollar, up 12.5 won from
Tuesday's close, after the central bank reported the country posted a $4.28
billion current account surplus in April, dealers said.
Bond prices, which move inversely to yields, closed lower. The return on
three-year Treasuries climbed 0.05 percentage point to 3.87 percent, and the
benchmark yield on five-year government bonds gained 0.09 at 4.66 percent.
pbr@yna.co.kr
(END)