Seoul shares close 1.3 pct higher on tech, retailer gains

(ATTN: ADDS bond yields at bottom)
By Lee Youkyung
SEOUL, Nov. 16 (Yonhap) -- South Korean shares finished 1.3 percent higher Monday
as gains in tech and retail issues offset losses in telecommunications and
pharmaceutical sectors, analysts said. The local currency climbed against the
U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) advanced 20.48 points to
1,592.47 won, snapping the two sessions of losing streak. Volume was thin at 239
million shares worth 3.88 trillion won (US$3.36 billion) with losers leading
gainers 418 to 365.
"A report that Samsung Life Insurance plans to list its shares on the Korea
Exchange sent the shares of companies holding its stake sharply up," said Lim
Dong-min, an analyst at KB Investment & Securities.
Samsung Life Insurance Co., a top life insurer, said it plans to list its shares
on the Seoul bourse next year in a bid to raise working capital. Shares of
Shinsegae Co., a department store chain that owns 13.6 percent of Samsung Life
Insurance's stake, jumped 4.2 percent to 546,000 won.
Memory chipmakers finished sharply higher on a brokerage note that the annual
memory chip market size next year is expected to exceed $47.8 billion in 2006.
Samsung Electronics Co., the world's largest memory chipmaker, advanced 2.66
percent to 733,000 won while Hynix Semiconductor added 4.51 percent to 19,700
won.
Retail shares gained ground on reports that giant department stores posted
better-than-expected revenues in the third quarter. Leading retailer Lotte
Shopping Co. climbed 4.45 percent to 340,000 won.
Daewoo Engineering & Construction Co. shot up 8.14 percent to 13,950 won on
reports that European firms have shown interest in buying a controlling stake in
the builder now up for sale.
The local currency closed at 1,154.8 won to the greenback, up 5.5 won from
Friday's close, as equities rallies in U.S. markets stoked investor appetite for
risky assets, driving investors away from the safe haven of the dollar, dealers
said.
Bond prices, which move inversely to yields, closed lower. The return on
three-year Treasuries added 0.02 percentage point to 4.29 percent and the
benchmark yield on five-year government bonds climbed 0.06 percentage point to
4.9 percent.
ylee@yna.co.kr
(END)