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Seoul shares edged up 0.2 percent on Friday to their highest close in more than five years, as further signs of a pickup in domestic demand boosted lenders such as Kookmin Bank, while higher crude prices lifted oil refiners. POSCO Co Ltd, the world's fifth-biggest steelmaker, rose 1.64 percent to end at 217,000 won after its chief executive said it would raise steel prices this year to offset surging raw materials costs.
But concerns that memory chip prices would remain soft for a longer period than expected weighed down semiconductor shares such as Samsung Electronics and prevented the market from stretching gains.
The benchmark Korea Composite Stock Price Index (KOSPI) rose 0.20 percent to 1,012.96, its highest close since finishing at 1,059.04 on January 4, 2000.
The index gained 1.6 percent for the week, its eighth consecutive weekly gain and the longest winning streak since the KOSPI rose for nine weeks in a row from late September through late November, 2001.
Kookmin Bank, South Korea's top lender, rose 2.33 percent to end at 48,400 won.
SK Corp, South Korea's biggest oil refiner, rose nearly 3 percent to 62,300 won.
But Samsung Electronics Co Ltd, the worlds' top maker of memory chips, fell 1.73 percent to 510,000 won on worries that DRAM (dynamic random access memory) chip prices would not recover as quickly as hoped.
Trade volume reached 587 million shares worth 3.8 trillion won compared to 614.8 million shares worth 3.7 trillion won on Thursday. Gainers edged out losers by 416 to 342 with 49 titles ending flat.
Foreign investors sold a net of 38.5 billion won ($38.27 million) in shares on the main bourse, while retail investors sold a net of 29.6 billion won. Institutional investors bought a net of 36.3 billion won.
The March KOSPI 200 futures index fell 0.25 point to 130.55 and the underlying KOSPI 200 spot index ended unchanged at 130.61. The junior Kosdaq market rose 0.67 percent to finish at 501.90.

Copyright Reuters, 2005

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