(LEAD) Seoul stocks edge up after choppy trading

(ATTN: ADDS bond yields at bottom)
SEOUL, May 29 (Yonhap) -- South Korean stocks closed 0.27 percent higher Friday
as strong foreign buying outweighed concerns over possible inter-Korean conflict,
analysts said. The local currency rose against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) added 3.72 points to
close at 1,393.23. Volume was moderate at 530.29 million shares worth 6.83
trillion won (US$5.45 billion), with gainers outpacing losers 498 to 323.
"Rising political tensions between the two Koreas put the key index in
range-bound moves," said Song Kyoung-keun, an analyst at Dongbu Securities. "But
continued foreign buying and reduced institutional sell-off helped pushed the
index higher."
Inter-Korean tensions escalated as South Korea on Thursday put its military
forces on high alert after North Korea unilaterally canceled the truce ending the
Korean War in 1953 following its nuclear tests on Monday.
Top refinery SK Energy soared 3.41 percent to 106,000 won as climbing oil prices
are expected to boost its sales.
Biggest automaker Hyundai Motor also increased 2.21 percent to 69,300 won on
hopes its car sales may get a boost form a potential collapse of U.S. carmaker
General Motors.
No.1 steel producer POSCO added 3.45 percent to end at 420,000 won on reduced
iron ore prices, extending its gains to a third session.
KB Financial Group, the parent firm for the country's leading lender Kookmin
Bank, dropped 3.85 percent to close at 40,000 won on speculation that it may
raise fund through a share offering to take over Korea Exchange Bank.
Korea Exchange rose 1.89 percent to 9,170 won. Woori Finance Holdings, the
holding firm for Woori Bank, dropped 3.07 percent to 11,050 won.
The local currency ended at 1,255 won against the dollar, up 1.9 won from
Thursday's close as strong overseas share purchases boosted demand for the local
unit, dealers said.
Bond prices, which move inversely to yields, closed mixed. The return on
three-year Treasuries fell 0.04 percentage point to 3.83 percent, and the
benchmark yield on five-year government bonds gained 0.01 at 4.67 percent.
pbr@yna.co.kr
(END)