Seoul shares end 0.14 pct higher on shipbuilder gains

By Kim Soo-yeon
SEOUL, June 3 (Yonhap) -- South Korean stocks closed 0.14 percent higher
Wednesday as gains of shipbuilders outweighed losses of financial stocks hit by
talks about possible share offerings, analyst said. The local currency hit an
over 7-month high against the U.S. dollar.

After choppy trading, the benchmark Korea Composite Stock Price Index (KOSPI)
added 2.04 points to 1,414.89. Volume was moderate at 658.8 million shares worth
6.97 trillion won (US$5.64 billion), with gainers outpacing losers 409 to 401.
"Foreign investors continued to buy local stocks, supporting the stock index,"
said Bae Sung-young, an analyst at Hyundai Securities Co. "Amid talk of potential
share sales, stocks of financial services companies lost ground."
The KOSPI started higher, mirroring overnight gains in U.S. markets, but it
traded in and out of the negative territory during the session without clear
leads.
Foreign investors remained net buyers of local stocks for the 14th straight
session, snapping up a net 120.8 billion won on the main bourse.
Shipbuilders and shipping lines traded in positive territory as the Baltic Dry
Index -- an indicator of shipping charges for dry cargo ships -- rose. Industry
leader Hyundai Heavy Industries climbed 4.16 percent to 225,500 won and Daewoo
Shipbuilding & Marine Engineering, the world's third-largest shipbuilder,
advanced 2.92 percent to 21,150 won.
Chip giant Hynix Semiconductor jumped 5.12 percent to 13,350 won and flat panel
leader LG Display advanced 1.57 percent to 29,100 won.
But financial shares lost ground on market speculation that major financial
services companies are set to raise capital through rights offerings, raising
jitters over share value dilution. KB Financial Group, which controls top lender
Kookmin Bank, declined 1.51 percent to 42,350 won and its rival Woori Finance
lost 5.7 percent to 10,750 won.
The local currency ended at 1,233.2 won against the greenback, up 6 won from
Tuesday's close and the highest level since the start of this year, as foreign
investors increased their holdings of Seoul stocks, dealers said.
sooyeon@yna.co.kr
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