Seoul shares end 0.79 pct higher on tech, brokerage gains

SEOUL, Jan. 4 (Yonhap) -- South Korean stocks closed 0.79 percent higher Monday,
the first trading day of 2010, as investors snapped up tech and brokerage shares,
analysts said. The local currency rose against the U.S. dollar.

After range-bound trading, the benchmark Korea Composite Stock Price Index
(KOSPI) gained 13.37 points to 1,696.14. Volume was moderate at 291.1 million
shares worth 4.21 trillion won (US$3.65 billion) with gainers outpacing losers
424 to 383.
"Foreign investors continued to scoop up local stocks, supporting the key index
on the first trading session of the new year," said Lee Jae-man, an analyst at
Tong Yang Securities. "In January, the KOSPI is likely to maintain its upward
trend with a possibility that it may top the 1,800-point mark this month."
Investor sentiment remained fragile mainly because liquidity concerns over Kumho
Asiana Group persisted and the U.S. markets lost ground on Thursday, the final
trading day of 2009. The Dow Jones industrial average declined 1.14 percent and
the tech-laden Nasdaq composite index shed 0.97 percent.
But foreign and institutional investors' buying underpinned the Seoul bourse with
offshore investors buying a net 207 billion won worth of Seoul stocks on the main
bourse.
Tech, bank and securities shares traded in positive territory. Chip giant Hynix
Semiconductor jumped 4.1 percent to 24,100 won as key chip prices advanced,
raising optimism about its earnings.
Leading brokerage house Daewoo Securities jumped 6.84 percent to 21,100 won and
Woori Finance Holdings, which the government is seeking to sell, advanced 4.33
percent to 14,450 won.
But shares of cash-strapped Kumho Asiana Group were under pressure after the
group asked its creditors to place Kumho Industrial Co. and Kumho Tire Co. under
a debt workout scheme. The debt restructuring program aimed to help the group
ease a worsening cash shortage sparked by a series of reckless takeover moves.
Kumho Industrial tumbled by the daily limit of 15 percent to 7,090 won and Kumho
Tire closed flat at 3,605 won.
The local currency ended at 1,154.80 won against the dollar, up 9.70 won from
Wednesday's close, as offshore investors raised their holding of local stocks,
dealers said. The local stock market opened an hour later than usual at 10:00
a.m. after ending the last session of 2009 on Wednesday.
sooyeon@yna.co.kr
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