LEAD) Seoul stocks end up 0.19 pct on UAE nuclear-power deal

(ATTN: ADDS bond yields at bottom)
SEOUL, Dec. 28 (Yonhap) -- South Korean stocks closed 0.19 percent higher Monday
as impetus from a nuclear power plant deal in the United Arab Emirates outweighed
profit taking by foreign and institutional investors, analysts said. The local
currency gained against the greenback.

After moving between tight gains and losses, the benchmark Korea Composite Stock
Price Index (KOSPI) gathered 3.24 points to end at 1,685.59, the highest close
since 1,690.05 on Sept. 29. Volume was moderate at 383.9 million shares worth 5.7
trillion won (US$4.9 billion) with losers outnumbering gainers 444 to 371.
The stock market opened with modest gains as companies that jointly won a $40
billion deal on Sunday to build and operate four nuclear power plants in the
oil-rich region gave an early boost to the key index. The deal was one of the
world's largest ones in the sector.
The key index, however, reduced its early gains as foreign and institutional
investors turned net sellers in the last day when investors can buy stocks to
receive dividends for their holdings.
"In the last day for stock dividends, foreign and institutional investors seemed
to end their buying trend that started in mid-December in a bid to cement profits
for this year," said Lee Jae-hoon, an analyst at Mirae Assets Securities Co.
Stock markets tend to lose ground after the deadline as stock purchases seeking
dividends comes to an end, Lee said.
Korea Electric Power, a state-own utility agency which led the South Korean
consortium to win the nuclear contract, jumped 5.04 percent to 34,400 won.
Consortium member Doosan Heavy Industries & Construction shot up by the daily
limit of 14.88 percent to 84,900 won with another participant Hyundai Engineering
& Construction surging 4.56 percent to settle at 71,100 won. Samsung C&T, which
also joined the group, rose 3. percent to 55,000 won.
Large-cap electronics firms and chemical makers, however, lost ground. Samsung
Electronics declined 0.38 percent to 787,000 won with LCD giant LG Display also
losing 1.28 percent to 38,500 won.
LG Chem, the nation's top chemical producer, dropped 3.08 percent to 220,000 won.
The local currency ended at 1,170.2 won to the U.S. dollar, up 4.8 won from
Thursday's close as the winning of the nuclear deal boosted optimism for the
local unit, dealers said.
Bond prices, which move inversely to yields, closed lower. The yield on the
benchmark five-year Treasury note rose 0.03 percentage point to 4.87 percent, and
the return on three-year government bonds also gained 0.04 percentage point to
close at 4.36 percent.
pbr@yna.co.kr
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