Seoul shares ended above the 1,400-point level on Tuesday for the first time in six months as technology firms such as Samsung Electronics rose due to fading worries about 2007 profits and as oil prices declined.
Korean Air Co surged 4.15 percent to 35,150 won, marking its biggest one-day percentage gain since September 14, after it posted a smaller-than-expected fall in quarterly profit. Analysts say the mood has changed in South Korean markets, which in October suffered a setback following North Korea's nuclear test and disappointing corporate earnings, as investors have turned less pessimistic about the global economy.
The benchmark Korea Composite Stock Price Index (KOSPI) rose 0.76 percent to end at 1,407.37, marking its highest close since May 15. The KOSPI has surged 18.1 percent since hitting a 2006 low in mid-June, and some analysts now expect the index to approach the record 1,464.70 hit in May 11 by year's end. Foreign investors snapped a 12-day selling streak on Tuesday ending the session purchasing a net 61.7 billion won ($65.81 million), according to Korea Exchange data at 0625 GMT.
Technology shares continued a rebound from a very weak October as worries over profits in the first half of 2007 have eased. Samsung Electronics Co Ltd rose 1.25 percent to 647,000 won after on Monday giving an optimistic outlook going into 2007 for most of its business lines.
The world's biggest maker of memory chips has gained 6 percent so far this month, and is now close to erasing its 8 percent fall in October. Flat panel maker LG.Philips LCD Co Ltd rose 2.5 percent to 30,800 won. Korea Electric Power Corp (KEPCO) gained 2.01 percent to 38,000 won. Samsung Securities Co, the country's most valuable brokerage, rose 2.12 percent to 52,900 won. However, LG Telecom Co Ltd ended flat at 10,700 won after South Korea imposed a $5.6 million fine on the country's smallest mobile operator.
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