Seoul stocks end up 1.81 pct on U.S. gains, institutional buying

(ATTN: CHANGES percent to won in penultimate para; ADDS bond yields at bottom,)
By Park Bo-ram
SEOUL, Sept. 16 (Yonhap) -- South Korean stocks closed 1.81 percent higher,
underpinned by bullish trading on Wall Street and solid institutional buying,
analysts said Wednesday.
The benchmark Korea Composite Stock Price Index (KOSPI) soared 29.93 points to
end at 1,683.33, setting a new high for the year. Volume was moderate at 546.2
million shares worth 8.7 trillion won (US$7.2 billion), with winners outnumbering
losers 438 to 358
"Strong finishes in the U.S. stock markets, combined with massive institutional
buying, led to a broad-based market gain," said Choi Sung-lak, an analyst at SK
Securities.
Wall Street shares extended gains on Tuesday after Federal Reserve Chairman Ben
Bernanke's comment that the recession is very likely over, and positive
manufacturing and retail data cheered investor sentiment. The Dow Jones
industrial average rose 0.59 percent to a yearly high.
Steelmakers and air carriers closed substantially higher as a strengthening local
currency is expected to cut down the cost of importing steel and oil. Top
steelmaker POSCO advanced 3.41 percent to 516,000 won and leading flag carrier
Korean Air jumped 5.08 percent to settle at 47,600 won.
Financial shares also made steep gains on hopes that soaring mortgage lending
would boost their net interest margins. KB Financial Group, which controls top
lender Kookmin Bank, surged 3.39 percent to 61,000 won.
Improved consumer spending also sent retailers sharply higher with Hyundai
Department Store shooting up 6.13 percent to 112,500 won.
Memory-chip behemoth Samsung Electronics finished up 3.38 percent to 795,000 won,
boosted by its growing global market share in memory-chips.
The local currency ended at 1,211.2 won to the U.S. dollar, up 7.2 won from
Tuesday's close. The unit jumped to the strongest level for this year after
bullish stock markets boosted foreign investors' demand and a global downtrend of
the dollar raised the value of the won, dealers said.

Bond prices, which move inversely to yields, closed higher. The return on
three-year Treasuries fell 0.07 percentage point to 4.40 percent and the
benchmark yield on five-year government bonds also shed 0.07 percentage point to
end at 4.86 percent.
pbr@yna.co.kr
(END)