Seoul stocks finish 0.25 pct higher on institutional buying

(ATTN: ADDS bond yields at bottom)
SEOUL, Dec. 11 (Yonhap) -- South Korean stocks closed 0.25 percent higher Friday,
led by massive purchases among institutional investors, analysts said. The local
currency rose against the U.S. dollar.
Erasing opening losses, the benchmark Korea Composite Stock Price Index (KOSPI)
added 4.17 points to end at a fresh seven-week high of 1,656.9. Volume was
moderate at 430 million shares worth 5.3 trillion won (US$4.6 billion) with
gainers outnumbering losers 546 to 244.
Strong buying among institutional investors helped the KOSPI add gains for nine
of the past 10 trading sessions to close at its highest level since Oct. 26.
"Program buying by institutional investors led the market advance on the back of
upbeat U.S. job market data, diminished Dubai jitters and expectations for
year-end rallies," said Sim Jae-yup, an analyst at Meritz Securities.
The extended stock-market blitz sent brokerage shares sharply higher with
mid-size securities firm Hanwha Securities shooting up 11.04 percent to settle at
9,050 won. Top brokerage Samsung Securities rose 3.01 percent to 65,100 won and
smaller rival Daewoo Securities soared 4.71 percent to 21,100 won.
Oil refiners also closed higher as an economic recovery and the deepening winter
season is expected to boost demand. Top refinery SK Energy jumped 4.13 percent to
113,500 won.
Steel producers were also bullish with No.2 steel maker Hyundai Steel advancing 5
percent to 81,900 won.
Hana Financial Group, the fourth largest financial firm, shed 0.7 percent to
36,650 won after a report emerged that it agreed to sell a 49 percent stake in
its credit card unit to wireless carrier SK Telecom in a bid to increase its
market share. The loss, however, was lower than losses suffered by banking
shares.
The local currency closed at 1,164 won to the U.S. dollar, up 1.5 won from
Thursday's close as net stock buying by foreign investors raised demand for the
won.
Bond prices, which move inversely to yields, ended higher. The return on
three-year Treasuries declined 0.04 percentage point to 4.22 percent, and the
benchmark yield on five-year government bonds shed 0.03 percent to 4.76 percent.
pbr@yna.co.kr
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