Seoul shares closed up 1.43 pct on economy recovery hopes

(ATTN: ADDS bond yields at bottom)
By Lee Youkyung
SEOUL, July 27 (Yonhap) -- South Korean stocks finished 1.43 percent higher
Monday as foreign and institutional investors stepped up stock buying on positive
earnings reports and hopes for an economic recovery, analysts said. The local
currency gained against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) sharply rose 21.46 points
to 1,524.05, the highest close since Aug 20, 2008. Volume was moderate at 474
million shares worth 5.88 trillion won (US$4.73 billion), with gainers
outnumbering losers 486 to 307.
"Foreigners and institutions increased their holdings of tech and finance stocks,
which traded weaker last week," said Hwang Bin-ah, an analyst at Kyobo Securities
Co. "Department stores-related shares also performed strong on brisk earnings
forecasts."
Major chipmakers traded in positive territory on the back of expectations for
rising key chip prices. Market leader Samsung Electronics added 2.34 percent to
699,000 won and the world's No.2 chipmaker Hynix Semiconductor soared 10.09
percent to 18,000 won, ending the losing streak of the last three sessions.
Bank shares were boosted on prospects for solid second-quarter earnings. KB
Financial Group, which controls top lender Kookmin Bank, added 4.33 percent to
53,000 won and No.2 financial services company Shinhan Financial Group advanced
2.61 percent to 37,400 won.
Retailers shares traded higher on reports that the key consumer sentiment index
rose for the fourth consecutive month in July to a seven-year high. South Korea's
central bank, the Bank of Korea, reported earlier in the day the consumer survey
index in July climbed to 109 from 106 the previous month.
Retail giant Lotte Shopping jumped 5.77 percent to 302,500 won and leading
retailer Shinsegae Co. also climbed 2.81 percent to 549,000 won. Hyundai
Department Store rose 3.14 percent to 98,400 won.
The local currency ended at 1,244 won against the greenback, up 5.6 won from
Friday's close, as offshore investors snapped up local stocks, dealers said.
Bond prices, which move inversely to yields, closed lower. The return on
three-year Treasuries added 0.01 percentage point to 4.17 percent, and the
benchmark yield on five-year government bonds advanced 0.03 percentage point to
4.73 percent.
ylee@yna.co.kr
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