Seoul shares close 0.8 pct higher on Wall Street gains

(ATTN: ADDS bond yields at bottom)
By Lee Youkyung
SEOUL, Aug. 26 (Yonhap) -- South Korean stocks ended 0.8 percent higher Wednesday
as investors snapped up undervalued shares and the U.S. economy showed signs of
life, analysts said.

The local currency gained against the U.S. dollar.
The benchmark Korean Composite Stock Price Index (KOSPI) added 12.74 points to
1,614.12, the highest close since July 24, 2008. Volume was moderate at 445
million shares worth 6.3 trillion won (US$5.07 billion) with gainers leading
losers 486 to 319.
"Ben Bernanke's reappointment as the Fed chairman and positive U.S. consumer
reports sent the U.S. markets higher," said Lee Jae-hoon, an analyst at Mirae
Asset Securities. "Those upward moves were reflected in the local market."
On Tuesday, the Dow Jones industrial average climbed 0.32 percent and the
tech-laden Nasdaq composite index rose 0.31 percent.
Heavy industries and shipbuilders traded in bullish territory as investors turned
their eyes to the stocks that have been isolated from the KOSPI's recent rise.
The world's largest shipbuilder Hyundai Heavy Industries Co. added 2.86 percent
to 197,500 won and leading power equipment maker Doosan Heavy Industries &
Construction Co. soared 5.96 percent to 65,800 won.
Leading steelmaker POSCO added 2.26 percent to 476,000 won after UBS upgraded its
target price on an expected increase in steel prices and rise in market demand in
the third quarter.
But auto shares, which fueled the recent bull runs, pared gains on profit-taking.
Top automaker Hyundai Motor Co. shed 2.82 percent to 103,500 won and its smaller
affiliate Kia Motors Corp. sank 3.27 percent to 16,250 won.
The local currency ended at 1,245.3 won against the greenback, up 2.9 won from
Tuesday's close, as offshore investors continued to purchase local stocks,
dealers said.
Bond prices, which move inversely to yields, closed lower. The return on
three-year Treasuries climbed 0.02 percentage point to 4.36 percent and the
benchmark yield on five-year government bonds gained 0.04 percentage point to
4.84 percent.
ylee@yna.co.kr
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