Seoul shares hit highest close in 5-1/2 months

Seoul shares rose 0.7 percent on Thursday to their highest close in 5-1/2 months as solid earnings lifted Hyundai Heavy and KEPCO, erasing the main stock index's loss for the year.
Shares climbed as domestic institutional buyers played catch up after North Korea's decision to return to six-party talks on its nuclear programme improved the mood.
The benchmark Korea Composite Stock Price Index (KOSPI) scored its third straight rise, closing 0.68 percent up at 1,383.73, which marked its highest close since May 17 and took it above the 1,379.37 at which the KOSPI ended last year.
The KOSPI was the only major index in Asia to post a loss in October, ending down 0.5 percent over the month.
Hyundai Heavy Industries Co gained 2.53 percent to 142,000 won after the world's biggest shipbuilder said quarterly net profit rose 21 percent from a year ago on a boom in lucrative new orders.
State-run power provider Korea Electric Power Corp advanced 0.56 percent to 36,200 won. Shinhan Financial Group closed up 0.12 percent to 43,150 won. Stocks seen as oversold also led gainers, with Hynix Semiconductor Inc gaining 2.2 percent to 34,800 won, recovering from an 8.3 percent fall in October.
The chip maker's relative strength index dropped to 18.4 on Monday, well below the 30-point level at which a share is considered technically oversold. But foreign investors sold a net 147 billion won ($156.6 million) in shares, bringing their net sales so far this year to $11.2 billion). They have been net sellers each month since May, and as of Thursday, have sold more stocks than they bought in 14 out of the past 16 sessions.
Hyundai Motor Co, the country's biggest auto maker, dropped 2.09 percent to 74,900 won, while Samsung Electronics Co Ltd fell 0.16 percent to 614,000 won. Trade volume reached 214 million shares worth 2.73 trillion won compared to 233 million shares worth 2.9 trillion won on Wednesday. Gainers trumped decliners by 465 to 285 with 81 titles ending flat.
Retail investors sold a net 70.4 billion won worth of shares on the main board, while institutional investors bought a net of 126.2 billion won. The December KOSPI 200 futures index added 0.35 point to 180.25 and the underlying KOSPI 200 spot index gained 1.28 points to 179.22. South Korea's junior and tech heavy Kosdaq market advanced 0.12 percent to finish at 595.40.