Seoul stocks end 2.04 pct higher on eased Dubai woes

(ATTN: ADDS bond yields at bottom)
SEOUL, Nov. 30 (Yonhap) -- South Korean stocks finished 2.04 percent higher
Monday as foreign and individual investors went bargain hunting on eased jitters
over Dubai debt problems, analysts said. The local currency jumped against the
U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) advanced 31.10 points to
end at 1,555.6, snapping a two-session losing streak. Volume was moderate at
302.2 million shares, worth 4.5 trillion won (US$3.8 billion) with gainers
outpacing losers 643 to 169.
"The local equity market recouped the Dubai-triggered losses on Friday as Dubai
pledged to partly bail out the troubled firm and investors were assured the
fallout would be limited," said Rhyu Yong-suk, an analyst at Hyundai Securities.
"But the recovery was smaller than expected as still sluggish consumption in the
U.S. made investors skeptical about the pace of the recovery," Rhyu said.
The uptick in the stock market came after state-run fund Dubai World's delay in
debt repayment plunged the KOSPI to the lowest level in four months on Friday.
Financial shares spearheaded the market turnaround as the sector brushed off deep
falls.
Second-largest financial firm Woori Finance Holding gained 9.4 percent to 14,550
won and No. 3 firm Shinhan Financial Group jumped 3.17 percent to end at 45,550
won.
Builders, which were hard hit due to concerns over cancellations of their
construction orders from Dubai, also gathered ground. Top builder Samsung C&T
advanced 4.95 percent to 45,600 win and smaller rival Hyundai Engineering &
Construction also soared 3.92 percent to 66,300 won.
Carmakers were also bullish as a weak local currency against the Japanese yen
boosted price competitiveness of Korean-made cars versus Japanese rivals.
Top automaker Hyundai Motor surged 4.65 percent to 99,000 won and its affiliate
Kia Motors rose 4.57 percent to end at 17,150 won.
The South Korean won closed at 1,162.8 won to the U.S dollar, up 12.7 won from
Friday's close as eased jitters on the Dubai debt crisis whetted appetites for
emerging assets and inflows of foreign stock funds boosted demand for the won,
dealers said.
Bond prices, which move inversely to yields, closed lower. The return on
three-year Treasuries gained 0.05 percentage point to 4.10 percent and the
benchmark yield on five-year government bonds rose 0.04 percentage point to 4.61
percent.
pbr@yna.co.kr
(END)