Seoul shares advance on shipyard, telecom gains

SEOUL, Apr 08, 2008 (Asia Pulse Data Source via COMTEX) -- -- South Korean stocks closed higher for a fourth consecutive session on Monday as investors scooped up shipyard, telecom and other blue-chip shares, analysts said. The local currency fell against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) gained 7.07 points, or 0.4 percent, to 1,773.56, the highest mark in almost three months. Volume was moderate at 269.69 million shares worth 5.43 trillion won (US$5.56 billion) with gainers outpacing losers 472 to 322.

The index started weak but rebounded later thanks to gains in blue-chip shares including shipbuilders, said Kim Hak-gyun, an analyst at Korea Investment & Securities. It seems that market jitters over a credit crisis prompted by the unstable mortgage market in the U.S. eased to some degree, though uncertainty lingers over overall economic conditions.

Shipbuilding shares drove the market higher. Top shipbuilder Hyundai Heavy Industries rose 1.51 percent to 403,000 won and Samsung Heavy Industries jumped 3.52 percent to 35,300 won.

Telecom shares also added to the upward momentum. Top mobile carrier SK Telecom surged 3.26 percent to 190,000 won and leading fixed-line telephony service provider KT gained 1.16 percent to 47,800 won.

Tech exporters erased earlier gains but managed to end in positive terrain. The nation's No. 2 tech exporter LG Electronics jumped to its all-time intra-day high of 143,000 won before closing at 137,500 won, up 0.73 percent from the previous session on profit-taking. Tech bellwether Samsung Electronics ended flat at 650,000 won.

Major financial and machinery companies, however, weighed on the market. Top lender Kookmin Bank lost 2.07 percent to 61,500 won after recent upswings, while leading brokerage Samsung Securities shed 1.88 percent to 83,300 won.

Power equipment making giant Doosan Heavy Industries & Construction plunged 4 percent to 120,000 won after a foreign brokerage firm lowered its target price, reflecting worries that rising raw material prices could dent the company's earnings going forward.

The local currency finished at 974.9 won against the dollar, down 1.1 won from Friday's close, as local banks purchased the greenback, dealers said.

Bond prices, which move inversely to yields, ended higher. The return on three-year Treasuries fell 0.03 percentage point to 5.11 percent and the benchmark yield on five-year government bonds fell 0.01 percentage point to 5.13 percent.

Source: Trading Market