Seoul stocks end 0.6 pct higher on steel, financial gains

(ATTN: ADDS bond yields at bottom)
By Park Bo-ram
SEOUL, Oct. 15 (Yonhap) -- South Korean stocks finished higher on Thursday as
bullish earnings outlooks boosted steelmakers and financial shares, analysts
said. The local currency jumped against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) gained 9.9 points to end
at 1,658.99. Volume was light at 366.9 million shares worth 5.8 trillion won
(US$5 billion) with gainers outnumbering losers 418 to 370.
"Better-than-expected third-quarter earnings by POSCO continued to lend support
to the KOSPI with financial shares joining the rally," said Kim Seung-han, an
analyst at HI Investment & Securities.
"Resumption of massive foreign purchases also lifted the broader market gain,"
Kim said. Overseas investors bought a net 536.4 billion won worth of local
shares.
Steel shares led the market gain as top steelmaker POSCO's solid earnings and
business outlook boosted optimism in the sector. The world's fourth-largest steel
maker said on Wednesday that profitability is expected to rise in the fourth
quarter, lifted by falling raw material costs and growing world demand.
POSCO advanced 3.69 percent to 534,000 won and its smaller rival Hyundai Steel
climbed 3.06 percent to 84,200 won.
Financial shares also gained ground, tracking U.S. investment banks JP Morgan &
Chase's solid third-quarter earnings on Wednesday.
Woori Finance Holdings, the country's second-biggest financial service company,
surged 2.19 percent to 16,350 won with KB Financial Group, which controls top
lender Kookmin Bank, gaining 0.99 percent to 61,000 won.
Hana Financial Group shot up 3.61 percent to end at 37,350 won on market
speculation that the firm may cancel or delay its planned rights offer of up to 2
trillion won.
Auto makers, however, lost ground as investors locked in profits following
powerful run-ups.
Top carmaker Hyundai Motor lost 1.41 percent to 105,000 won and Kia Motors
plunged 3.65 percent to settle at 17,150 won.
The local currency ended at 1,155.1 won to the U.S. dollar, up 9.7 percent and
the highest since Sept. 24 last year. Massive stock purchases by foreign
investors boosted demand for the South Korean won, dealders said.
Bond prices, which move inversely to yields, closed lower. The return on
three-year Treasuries rose 0.06 percentage point to 4.43 percent while the
benchmark yield on five-year government bonds also added 0.03 percentage point to
end at 4.88 percent.
pbr@yna.co.kr
(END)