Seoul stocks end up 1.14 pct on institutional buying

stocks-summary


SEOUL, Dec. 10 (Yonhap) -- South Korean stocks finished 1.14 percent higher
Thursday as massive institutional buying pushed up the key index to a seven-week
high, analysts said. The local currency fell against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) surged 18.56 points to
end at 1,652.73, the highest closing since Oct. 26. Volume was heavy at 460.23
million shares worth 7.1 trillion won (US$6.1 billion) with gainers outnumbering
losers 425 to 355.
After opening with thin range-bound trading, the key index slumped by as much as
1.3 percent after Bank of Korea Gov. Lee Seong-tae signaled a potential interest
rate hike in the coming months. Lee said, "By reviewing economic data and
inflation every month, the bank will weigh the timing (of a possible rate hike)."
The remarks came as the central bank has held the rate steady at a record low 2
percent for 10 straight months.
Massive program buying among institutional investors, however, gave a strong
boost to the market before its close.
"Institutional investors scrambled to increase stock holdings possibly in
anticipation of year-end market rallies," said Kwak Joong-bo, an analyst at Hana
Daetoo Securities.
The year-end rallies, also dubbed the Santa Clause rally, came as investors
expected more funds to flow into the market in January mainly for accounting
purposes.
Blue-chip shares gathered ground across the board with electronics firms leading
the overall market advance.
Market leader Samsung Electronics rose 1.29 percent to 788,000 won and computer
memory chip giant Hynix Semiconductor gained 1.46 percent to 20,850 won.
Financial shares also closed higher with top financial firm KB Financial Group
jumping 2.96 percent to settle at 62,600 won.
Hyundai Heavy Industries increased 1.22 percent to 165,500 won after the top
shipbuilder said it sealed a deal to buy 50 percent plus one share in trading
firm Hyundai for 235 billion won. The former sister company specializes in
overseas resource development.
The local currency ended at 1,165.50 won to the greenback, down 3.90 won from
Wednesday's close.
pbr@yna.co.kr
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