Seoul stocks finish up 2.3 pct on foreign buying

(ATTN: ADDs bond yields at bottom)
By Lee Youkyung
SEOUL, Sept. 10 (Yonhap) -- South Korean shares closed 2.3 percent higher
Thursday on reinvigorated foreign buying and steep gains in shipbuilding,
shipping and brokerage issues, analysts said. The local currency rose against the
U.S. dollar for a sixth day.
The benchmark Korea Composite Stock Price Index (KOSPI) jumped 36.91 points to
1,644.68, the highest closing since July 1, 2008. Volume was moderate at 572
million shares worth 8.86 trillion won (US$7.22 billion won) with gainers leading
losers 604 to 217.
"Investors saw a chance for bargain-hunting in shipyards and shipping firms as
they have underperformed during the key index's rise lately," said Hwang Bin-ah,
an analyst at Kyobo Securities. "And the central bank's decision to freeze the
key rate was positive for brokerages issues."
Earlier in the day, the Bank of Korea (BOK) announced that it would keep the key
rate steady at a record low of 2 percent for another month as widely expected.
The BOK head gave an upbeat appraisal of the country's economy in the second half
by saying it would outperform the bank's estimate, easing concerns about the
sustainability of the KOSPI's recent steep gains.
Most sectors finished sharply higher as both foreigners and local institutions
were net buyers of shares worth 429.9 billion won and 283 billion won,
respectively.
The world's largest shipbuilder Hyundai Heavy Industries advanced 4.55 percent to
195,500 won while No.2 Daewoo Shipbuilding & Marine Engineering shot up 12.94
percent to settle at 20,950 won.
Brokerage issues got a boost from the sharp increase in trading volume and the
BOK's rate announcement. Samsung Securities Co., the largest brokerage by market
value, advanced 4.02 percent to 72,500 won and Daewoo Securities Co. added 4.75
percent to 23,150 won.
Carriers and airlines fared well as a strengthening won was expected to boost
their sales. Top bulk carrier STX Pan Ocean Co. soared 12.98 percent to 11,750
won while Korean Air gained 5.51 percent to 45,000 won.
Leading construction equipment maker Doosan Infracore Co. finished up 12.35
percent to 18,200 won, tracking overnight rallies in U.S. building stocks.
But pharmaceutical companies finished lower after having outperformed the key
index's rise on the spread of the Influenza A virus. Green Cross sank 3.41
percent to 156,000 won.
The local currency closed at 1,224.5 won to the U.S. dollar, up 2.5 won from
Wednesday's close, as global stock rallies stoked investors appetite for risky
assets, dealers said.
Bond prices, which move inversely to yields, closed sharply lower. The return on
three-year Treasuries added 0.21 percentage point to 4.5 percent and the
benchmark yield on five-year government bonds gained 0.15 percent point to 4.96
percent.
ylee@yna.co.kr
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