Seoul shares rose on Monday fuelled by gains in key technology and auto stocks such as Hynix Semiconductor and Hyundai Motor amid growing optimism about the global economy and corporate earnings. The Korea Composite Stock Price Index (KOSPI) finished up 0.7 percent at 1,792.42 points, just shy of the psychologically significant 1,800 point level.
"Key blue chips led the market's gains amid brewing earnings expectations," said Won Sang-pil, a market analyst at Tong Yang Securities. Analysts said recent better than expected data from the United States, including monthly payrolls, had fuelled optimism about the state of the global economy. Foreign investors were buyers of a net 335.6 billion won ($286.1 million) worth of stocks, their biggest daily net purchase in about six weeks.
Technology issues bounced helped by a firm 1.7 percent gain in the Philadelphia semiconductor index. Samsung Electronics advanced 2.5 percent, further boosted by news the world's No 2 cellphone maker expects to sell up to 25 million smartphones this year, exceeding its earlier target.
Hyundai Motor gained 1.7 percent, and Kia Motors climbed 4.7 percent on a labour deal that Suh Sung-moon, an analyst at Korea Investment & Securities, said "points to a higher operation ratio, which will help its earnings." Hanwha Corp fell 3.3 percent after local media reports prosecutors were probing parent Hanwha Group on suspicion it had set up slush funds, which a Hanhwa Group spokesman denied.
Shares in Shinhan Financial Group continued to face pressure, ending flat, after its bank unit late last week sued the group CEO. Securities firms rallied as sentiment towards the sector improved ammid the stock market's pickup Shares in Samsung Securities, South Korea's top brokerage, rose 2 percent and Woori Investment & Securities advanced 1.7 percent. Advancers outnumbered decliners 438 to 348 and 104 issues ended flat.
Trading volume was 322.8 million shares worth 5.3 trillion won, compared with 306.2 million shares worth 5.9 trillion won in the previous session. The KOSPI 200 September futures index ended up 1.9 points at 233.0, and the KOSPI 200 spot index rose 1.73 points to 232.77. The junior Kosdaq market rose 0.95 percent at 482.82.
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