Seoul stocks end 0.69 pct higher on tech gains

(ATTN: ADDs bond yields at bottom)
By Lee Youkyung
SEOUL, Sept. 8 (Yonhap) -- South Korean shares finished 0.69 percent higher
Tuesday, led by gains in tech shares, analysts said. The local currency rose
against the U.S. dollar for a fourth day.
The benchmark Korea Composite Stock Price Index (KOSPI) advanced 11.12 points to
1,619.69. Volume was moderate at 516 million shares worth 7.3 trillion won
(US$5.92 billion) with losers outpacing gainers 426 to 383.
"Large-cap tech companies like Hynix Semiconductor took a pause today while other
tech shares gained ground," said Bae Sung-young, an analyst at Hyundai
Securities. "Foreigners bought more local shares than they sold today but their
trading volume sharply declined, limiting markets' upside movement,"
The KOSPI got off to a strong start despite the absence of clear economic cues
after New York stock markets closed for the Labor Day holiday.
Investors were awaiting the release of major economic announcements at home and
abroad set for later this week. The Bank of Korea, South Korea's central bank, is
set to hold its monthly rate-setting meeting on Thursday, with market players
expecting the central bank to keep its record-low rate at 2 percent for the
month.
Rechargeable battery producers and other developers of batteries for hybrid
electric vehicles also helped lead broader rallies.
SK Energy Co., the country's leading oil refinery, spiked to 118,000 won after
rising by the daily limit of 14.56 percent. The jump came as local market
analysts sharply upgraded their target price on an estimated rise in the
company's battery business profits.
Samsung SDI Co., the world's No. 3 producer of rechargeable batteries, also
soared 5.08 percent to 165,500 won.
"Investors are betting on battery makers' strong earnings prospects and on
expectation that hybrid cars will lead the green industry," Bae added.
Korea Zinc Inc. jumped 12.11 percent to 162,000 won as the world's No. 2 zinc
smelter was forecast to benefit from rising metal prices.
But Hynix Semiconductor shed 0.72 percent to 20,800 won as its creditors began
inviting bidders to buy a stake in the world's second largest computer memory
chip maker.
The local currency closed at 1,233.2 won to the greenback, up 0.3 won from
Monday's close, as offshore investors continued to buy local stocks, dealers
said.
Bond prices, which move inversely to yields, closed higher. The return on
three-year Treasuries fell 0.02 percentage point to 4.31 percent and the
benchmark yield on five-year government bonds lost 0.02 percent to 4.82 percent.
ylee@yna.co.kr
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