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South Korean shares surged to an all-time record close on Wednesday, as a fall in crude oil prices and upbeat US economic data bolstered sentiment for exporters such as car maker Hyundai Motor Co.
Kookmin Bank and other domestic demand-focused stocks also rose as recent upbeat data lifted investors' optimism about the outlook for the domestic economy.
The benchmark Korea Composite Stock Price Index rose 1.81 percent to end at 1,142.99, rising above the previous closing record of 1,138.75 set on November 8, 1994, according to Korea Exchange data. The index has also risen to within touching distance of its all-time high of 1,145.66.
"This could be only the beginning," said Chang In-whan, chief executive and fund manager at KTB Asset Management. Hyundai Motor, the country's top auto maker, surged 6.9 percent to 79,000 won, after earlier hitting an all-time high of 79,800 won. Samsung Electronics Co Ltd, the world's top memory chip maker, gained 1.76 percent to 579,000 won.
Kookmin Bank, South Korea's biggest lender, gained 2.25 percent to 54,600 won, while Samsung Securities Co, the country's most valuable brokerage, rose 5.43 percent to 34,950 won.
On the downside, Hynix Semiconductor Inc fell 1.36 percent to 21,700 won amid share overhang worries after creditors named on Tuesday lead managers for a stake sale worth an estimated $2.3 billion.
Trade volume reached around 413 million shares worth 3.3 trillion won compared to 494.9 million shares worth 3.2 trillion won on Tuesday. Gainers outnumbered decliners by 534 to 201 with 77 titles ending flat. Foreign investors bought a net 44.6 billion won in shares on the main bourse, data at 0435 GMT showed, while retail investors sold a net 211.8 billion won. Institutional investors bought a net 145.2 billion won.
The September KOSPI 200 futures index rose 3 points to 148.80, while the underlying KOSPI 200 spot index rose 2.74 points to 147.95.
South Korea's junior and tech heavy Kosdaq market gained 1.17 percent to finish at 530.53.

Copyright Reuters, 2005

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