Seoul shares hit 13-month high on tech, financial gains

SEOUL, Aug. 24 (Yonhap) -- South Korean stocks rose to a 13-month high Monday as
foreigners snapped up tech and financial shares on growing optimism for an
economic recovery, analysts said. The local currency gained against the U.S.
dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) soared 31.24 points, or
1.98 percent, to 1,612.22, the highest close since July 24, 2008. Volume was
moderate at 534.3 million shares worth 8.72 trillion won (US$7.03 billion), with
advancers outpacing decliners 441 to 375.
"The Seoul bourse ended sharply higher, mirroring gains in U.S. markets," said
Bae Sung-young, an analyst at Hyundai Securities. "If global markets continue to
gain ground, the local market is likely to continue to hover above the 1,600
level."
The KOSPI surpassed the 1,600-point mark for the first time since late July last
year as offshore investors continued to pick up local stocks. They purchased a
net 301.5 billion won worth of local shares on the main bourse.
Tech and automaker shares led the broader market rally. Market leader Samsung
Electronics advanced 3.43 percent to 783,000 won, the highest closing in its
history and top carmaker Hyundai Motor jumped 4.37 percent to reach an all-time
high of 107,500 won.
Financial shares including bank and brokerage issues gained ground. No. 3
financial services firm Shinhan Financial Group rose 3.41 percent to 42,500 won
and leading securities firm Samsung Securities gained 5.01 percent to 79,700 won.
U.S. markets closed sharply higher Friday, buoyed by improving data on
existing-home sales and upbeat remarks on an economic recovery by Federal Reserve
Chairman Ben Bernanke. The Dow Jones industrial average climbed 1.67 percent and
the tech-laden Nasdaq composite index rose 1.59 percent.
The local currency ended at 1,240 won against the greenback, up 9.7 won from
Friday's close, as foreign investors increased their holdings of Seoul stocks,
dealers said.
sooyeon@yna.co.kr
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