Seoul stocks end 0.43 pct higher on foreign buying

(ATTN: ADDs bond yields at bottom)
By Lee Youkyung
SEOUL, Sept. 11 (Yonhap) -- South Korean shares finished 0.43 percent higher
Friday as heavy foreign buying pulled banks and retailers higher, analysts said.
The local currency rose against the U.S. dollar for a seventh day.
The benchmark Korea Composite Stock Price Index (KOSPI) advanced 7.02 points to a
new yearly high of 1,651.7. Volume was moderate at 502 million shares worth 7.48
trillion won (US$6.12 billion) with gainers leading losers 443 to 357.
"Market sentiment was buoyed by Thursday's big rally and overnight gains on Wall
Street," said Kim Byung-yeon, an analyst at Woori Investment & Securities.
"Foreign investors bought shares worth more than 540 billion won today and that
is a substantial amount."
Despite hefty foreign buying, the KOSPI moved in a tight range as local
institutions and retail investors turned to net sellers, limiting the market's
upside move.
Bank issues closed higher tracking overnight gains among U.S. peers. KB Financial
Group, which controls top lender Kookmin Bank, ended 4.07 percent higher at
58,800 won and No. 2 Woori Financial Group rose 3.16 percent to 16,300 won, its
all-time high.
"Market interest rates have been picking up recently, boosting lenders' interest
rate margin profits," Kim said.
Retailers gained ground after having underperformed amid the KOSPI's steep gains.
Retail behemoth Lotte Shopping climbed 4.22 percent to 308,500 won while its
smaller rival Hyundai Department Store shot up 8.08 percent to 107,000 won.
But tech issues closed lower as investors moved to take profits. Consumer
electric giant LG Electronics sank 4.1 percent to 128,500 won after local
analysts revised down its earnings outlooks. Samsung SDI Co., the world's No. 3
battery maker, lost 1.24 percent to 159,500 won.
The local currency closed at 1,221.8 won to the U.S. dollar, up 2.7 won from
Thursday's close, as global stock rallies eroded the dollar's appeal as an
investment safe haven, dealers said.
Bond prices, which move inversely to yields, closed mixed. The return on
three-year Treasuries shed 0.01 percentage point to 4.49 percent and the
benchmark yield on five-year government bonds remained steady at 4.96 percent.
ylee@yna.co.kr
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