Seoul stocks close up 1.03 pct on robust economic data

By Lee Youkyung
SEOUL, Oct. 26 (Yonhap) -- South Korean shares finished 1.03 percent higher
Monday as foreign and institutional investors bought local shares on
better-than-expected third-quarter economic data, which showed the South Korean
economy grew at the fastest quarterly clip in over seven years, analysts said.
The local currency climbed against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) advanced 16.94 points to
1,657.11. Volume was moderate at 309 million shares worth 4.7 trillion won
(US$3.99 billion) with losers leading gainers 417 to 368.
"Local shares have moved sideways below the 1700-mark for about a month because
investors feared that earlier stock rallies outpaced the economic recovery," said
Park Seung-jin, an analyst at Samsung Securities. "The third-quarter growth rate
showed that the gap between stock gains and the economy has narrowed."
The Bank of Korea (BOK), South Korea's central bank, announced earlier in the day
that the country's economy expanded 2.9 percent on quarter in the July-Sept
period, well above market estimates. Analysts ascribed the higher-than-expected
growth to reviving consumer spending and facility investment,
Investors took the 2.9 percent growth domestic product (GDP) data, the broadest
measure of economic performance, as a tangible sign that the Korean economy is
recovering from the economic downturn, and hence moved ahead to purchase local
shares.
Automakers and auto parts suppliers were among the brightest spots with No. 1
Hyundai Motor Co. jumping 4.11 percent to 114,000 won. Top auto parts maker
Hyundai Mobis Co. also climbed 4.14 percent to 163,500 won and leading tire maker
Hankook Tire Co. advanced 3.93 percent to 25,100 won.
"Auto-related issues are widely seen to continue their rally as their increased
global market share is likely to further drive their growth," Park said.
Doosan Infracore, top construction equipment maker, shot up 5.92 percent to
18,800 won on a report that its September sales in China reached all time monthly
high.
Drugmaker Green Cross Corp., which produces local vaccines against the Influenza
A, spiked to the daily limit to 167,500 won as the demand for vaccines was
expected to rise sharply at a national level.
The local currency closed at 1,177.7 won to the U.S. dollar, up 3.8 won from
Friday's close as the better-than-expected economic figures stoke investor
appetite for risky assets and away from the safe haven of dollars, dealers said.
ylee@yna.co.kr
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