Seoul stocks end 1.97 pct higher on U.S., China gains

By Park Bo-ram
SEOUL, Aug. 20 (Yonhap) -- South Korean stocks closed 1.97 percent higher
Thursday as rebounding global shares cheered investor confidence, analysts said.
The local currency rose against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) advanced 30.43 points to
1,576.39. Volume was moderate at 447.7 million shares worth 6.1 trillion won
(US$4.9 billion) with winners outnumbering losers 544 to 264.
"Rising U.S. stocks, combined with a rebound in the Chinese market, fueled the
gains as investors shifted their focus on solid economic fundamentals away from a
correction following recent powerful rallies," said Bae Sung-young, an analyst at
Hyundai Securities.
Leading the gains, institutions drove up financial and chemical shares.
"Investors scooped up shares of financial and chemical firms to price in their
strong second-quarter earnings," Bae said.
KB Financial Group, the top financial service firm by net profit, jumped 6.11
percent to 53,800 won and smaller rival Woori Finance Holdings soared 5.66
percent to settle at 14,000 won.
Hanwha, the country's leading explosives and chemicals producer, soared 8 percent
to 41,850 won with LG Chem gaining 2.37 percent to end at 173,000 won.
Beaten-down steel makers also got a boost as investors hunted for bargains. Top
steel firm POSCO climbed 2.39 percent to finish at 471,000 won.
Airlines, however, lost ground as mounting cases of Influenza A were feared to
weigh down demand for air travel. Top carrier Korean Air shed 1.29 percent to
42,250 won and Asiana Airlines lost 1.8 percent to 3,815 won.
The local currency closed at 1,246.9 won against the greenback, up 8.9 percent
from Wednesday's close, as investors shed risk-averse sentiment, dealders said.
pbr@yna.co.kr
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