Seoul stocks end 0.2 pct up on foreign buying

(ATTN: ADDS bond yields at bottom)
By Lee Youkyung
SEOUL, Aug. 11 (Yonhap) -- South Korean shares closed up 0.2 percent Tuesday as
foreign investors extended their buying streak, bolstered by upbeat economic
signals from the central bank, analysts said. The local currency fell against the
U.S. dollar.
After trading in a tight-range, the benchmark Korea Composite Stock Price Index
(KOSPI) edged up 3.1 points to 1,579.21. Volume was moderate at 563 million
shares worth 6.24 trillion won (US$ 5.04 billion) with gainers outnumbering
losers 455 to 334.
"The central bank's rate decision was widely expected," said Lee Jae-man, an
analyst at Tongyang Securities. "But the fact that its chief gave a positive read
of the country's economy was an encouraging sign for the market."
The Bank of Korea (BOK) froze its key rate at a record low of 2 percent, citing
lingering economic uncertainties. BOK Gov. Lee Seong-tae indicated it would
maintain the soft monetary policy, easing concerns about tightening of credit.
Tech shares closed sharply higher. LG Electronics jumped 3.49 percent to 133,500
won amid expectations it would further expand its presence in the U.S. handset
market.
Chipmaking giant Hynix Semiconductor also added 2.2 percent to 18,600 won, as
foreign buyers scooped up shares on an upbeat D-RAM market forecast.
Ssangyong Motor Co., the smallest automaker in South Korea, finished at 3,060
won, its highest close this year. The automaker rose by the daily limit of 15
percent for a fourth consecutive session since the labor union's months-long
strike came to an end on Aug. 6.
But refinery and airline shares lost ground, limiting the key index gains. Top
oil refinery SK Energy tumbled 2.38 percent to 102,500 won and leading carrier
Korean Airline lost 3.63 percent to 43,850 won.
The local currency ended at 1,239.1 won against the dollar, down 10.9 won from
Monday's close, as the greenback remained strong in markets across the world,
dealers said.
Bond prices, which move inversely to yields, closed higher. The return on
three-year Treasuries lost 0.06 percentage point to 4.41 percent and the
benchmark yield on five-year government bonds shed 0.04 percentage point to 4.95
percent.
ylee@yna.co.kr
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