Seoul stocks end 1.94 pct higher on rate freeze

By Lee Youkyung
SEOUL, Oct. 9 (Yonhap) -- South Korean stocks closed 1.94 percent higher Friday
as investor sentiment was buoyed by the central bank's interest rate freeze,
analysts said. The local currency climbed against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) jumped 31.33 points to
1,646.79. Volume was moderate at 431 million shares worth 5.91 trillion won
(US$5.07 billion) with gainers outnumbering losers 538 to 261.
"The rate freeze dispelled concerns over a rise in borrowing costs," said Bae
Sung-young, an analyst at Hyundai Securities. "Foreign investors snapped up local
shares on rallies in global markets."
Earlier in the day, the Bank of Korea (BOK) left the benchmark seven-day repo
rate steady at a record low of 2 percent and said it will maintain its
accommodative policy stance for the time being.
Tech chips, which had been underperforming the KOSPI ahead of the traditionally
weak fourth quarter, rose sharply. Chip giant Samsung Electronics jumped 4.86
percent to 755,000 won, snapping a five-day losing streak.
Hyunix Semiconductor, the world's No. 2 memory chip maker, added 1.81 percent to
19,650 won.
Top construction equipment maker Doosan Infracore shot up 7.16 percent to 17,950
won on a prediction by a brokerage firm that its sales in China are expected to
rise on an increase in public spending.
LG Telecom, the country's smallest mobile carrier, finished up 0.44 percent at
9,100 won after the previous day's announcement that it was considering absorbing
its affiliated fixed-line phone and Internet operators.
No. 2 mobile carrier KT, however, fell 1 percent to 39,800 won.
The local currency closed at 1,164.5 won to the U.S. dollar, up 2.5 won from
Thursday's close and a fresh yearly high, as rallies in global equities stoked
investors' appetite for risk, dealers said.
ylee@yna.co.kr
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