Seoul shares closed up on Tuesday, led by sharp gains at LG.Philips LCD, and as banks rose amid optimism the sale of Korea First Bank to Standard Chartered would improve the stability of the banking sector. The benchmark Korea Composite Stock Price Index (KOSPI) rose 1.16 percent to close at 884.29.
"LG.Philips helped push the market higher, with investors betting on a bottoming out of panel prices," said Kim Yung-min, an equity strategist at Dongwon Investment Trust Management. "Banking shares also rose now that it looks the sector will be calmer after Korea First Bank was sold," he added.
LG.Philips LCD Co Ltd, the world's No 2 LCD maker, surged 7.08 percent to end at 38,550 won amid hopes flat panel prices will bottom out by the first quarter.
Previous estimates had the oversupply of liquid crystal displays lasting until mid-2005. Shares in display maker Samsung SDI Co rose 4.43 percent to end at 106,000 won.
The tech sector slashed earlier losses amid hopes for good quarterly earnings at US tech bellwether Intel Corp, due out later in the day.
The world's largest maker of microchips raised its fourth-quarter revenue outlook last month, citing strong global demand for its microprocessors and reduced levels of inventories.
Shares in Samsung Electronics Co Ltd, the world's top maker of memory chips, rose 0.91 percent to close at 442,000 won.
Banking shares also rose after U.K.-based Standard Chartered bought a controlling stake in Korea First Bank for $3.3 billion on Monday from US private equity fund Newbridge Capital.
Korea Exchange Bank, controlled by US equity fund Lone Star, rose 1.78 percent to end at 8,600 won after gaining almost 8 percent at one point. The shares rose on hopes HSBC Holdings Plc, which was outbid for KFB, would now switch its attention to the foreign exchange specialist.
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