Seoul shares close 1.09 pct higher on possible rate freeze

By Lee Youkyung
SEOUL, Oct. 8 (Yonhap) -- South Korean stocks closed 1.09 percent higher Thursday
as investors went bargain hunting on eased worries about a rate hike here,
analysts said. The local currency climbed against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) advanced 17.46 points to
1,615.46, snapping a five-day losing streak. Volume was moderate at 369 million
shares worth 6.5 trillion won (US$5.57 billion) with gainers outnumbering losers
499 to 301.
"Investors took relief from comments by the chief of the central bank," said
Hwang Keum-dan, an analyst at Samsung Securities. "Some tech and auto large-caps
that had traded in negative territory over the past few days gave investors a
chance to go bargain hunting."
Meeting with reporters in Istanbul Wednesday, Bank of Korea (BOK) Gov. Lee
Seong-tae hinted that the South Korean central bank may freeze the key interest
rate for October, saying "Australia's case is different from ours."
Australia recently raised its key rate, becoming the first major economy to do
so. The BOK is scheduled to set the level of its seven-day repo rate for October
on Friday.
After bobbing in and out of negative territory, the KOSPI rose sharply higher in
late trading on institutional and retailer buying.
Samsung Techwin, a manufacturer of precision electronics parts, rose 2.73 percent
to 90,400 won on reports that Samsung Electronics is mulling a takeover of its
closed-circuit television (CCTV) division.
Samsung Electronics earlier in the day said it was considering purchasing the
CCTV business from its affiliate Techwin in a regulatory filing with the Korea
Exchange.
Samsung Electronics, however, extended its losing streak to a fifth day as
investors awaited more clues about its performance in the current quarter, a
traditionally weak season for tech companies. Its shares finished 0.28 percent
lower at 720,000 won.
But Hynix Semiconductor gained 4.89 percent to 19,300 won and LG Electronics rose
3.03 percent to 119,000 won as investors hunted for bargains.
Automakers also finished higher with top automaker Hyundai Motor climbing 3.11
percent to 99,600 won and its affiliate Kia Motor adding 5.61 percent to 16,950
won on a brisk earnings outlook.
The local currency closed at 1,167 won to the U.S. dollar, up 3.5 won from
Wednesday's close, as global investors sold dollars to bet on stocks and
commodities, dealers said.
ylee@yna.co.kr
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