Seoul shares hit an all-time high on Monday, led by chip makers after news that Samsung Electronics may sell NAND flash chips to Japan's Sony reinforced optimism about earnings for the sector.
Car shipper Gloves Co Ltd rose by the daily 15 percent limit to 48,950 won on its market debut as investors bet growing sales at local car makers including Hyundai Motor Co would help boost its earnings. But broader gains were limited as investors locked in gains in financials such as Hana Financial Group.
The financial sector sub-index has doubled this year. The benchmark Korea Composite Stock Price Index rose 0.59 percent to finish at 1,367.57, after hitting a record-high at 1,371.63. "News of Samsung Electronics' supply deal with Sony has reinforced growing optimism about bullish demand for NAND flash chips," said Jae H. Lee, an analyst at Daiwa Securities in Seoul.
"Market consensus is that seasonal factors may pressure earnings at chip makers in the first six months of next year, but profitability will improve in the second half." Samsung Electronics Co Ltd hit a record-peak for the third consecutive session, after it said it might sell NAND flash chips to Japan's Sony Corp.
The world's largest memory chip maker ended up 1.4 percent at 654,000 won, after hitting a record-high of 663,000 won. Highness Semiconductor Inc, the world's second-largest memory chip maker, reversed early losses to finish up 1.2 percent at 33,850 won, building on its 15.7 percent gain last week.
Explosive demand for NAND flash memory chips, used in hot-selling music players and digital cameras, is a key factor behind the sector's recent rally, along with signs of a rebound in prices of mainstay dynamic random access memory (DRAM) chips.
LG.Philips LCD Co Ltd, the world's second-largest flat screen maker, rose 2.26 percent to 42,900 won, boosted by data showing US consumer sentiment rose to its highest level since July. The United States takes in about one-fifth of South Korea's total shipments.
Telecom operators rose on bullish investor expectations for year-end dividend payments, with SK Telecom Co jumping 5.46 percent to 193,000 won. But along with financials, LG Electronics fell 1.17 percent to 92,700 won on profit taking, giving up part of its 15.2 percent gain over the past week. LG Card Co Ltd fell 2.08 percent to 47,000 won, while Hana Financial Group shed 1.96 percent to 45,000 won.
Trade volume reached 381 million shares worth 3.9 trillion won compared to 418 million shares worth 4.5 trillion won on Friday. Gainers outnumbered decline's by 416 to 340 with 67 titles ending flat.
Foreign investors were net sellers for a seventh consecutive session, bringing their total sales over the period to a net 795.6 billion won ($784.9 million).
The March KOSPI 200 futures index rose 1.50 points to 174.50, while the underlying KOSPI 200 spot index advanced 1.16 points to 176.27. The junior tech-heavy Kosdaq finished up 1.07 percent at 698.60.
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