Seoul shares hit record again

Seoul shares hit a second consecutive record on Thursday led by technology firms such as LG.Philips LCD and Hynix Semiconductor on expectations profits will recover thanks to rising prices for flat panels and chips. Broader gains were underpinned by data showing consumer sentiment index hit a 17-month high in June, cementing the optimism about the economy.
But LG Chem Ltd fell after saying it would absorb a petrochemicals affiliate partly by issuing new shares, while ski slope and casino operator Kangwon Land Inc plunged 11 percent after the city of Pyeongchang lost its bid to host the 2014 Winter Olympic Games.
"The IT stocks could lead the market rally from now on," said Lim Chang-gue, a fund manager at Samsung Investment Trust Management. "Things are looking very positive. LG.Philips looks like it did quite well in the second quarter, while contract prices for DRAM chips are showing sings of a recovery," he added.
The benchmark Korea Composite Stock Price Index (KOSPI) rose 0.51 percent to a record close of 1,847.79 points, though that was well-off an all-time high of 1,865.52 hit earlier in the session as investors locked in gains.
The main index has jumped 6 percent this week on the back of several positive economic data and amid a surge of money into local mutual funds as retail investors pile into a market that has now gained 29 percent for the year. That compares with a 5.8 percent rise in Japan's Nikkei average, and a 16.9 percent gain in Taiwan's main index so far this year.
Foreign investors were also strong buyers on Thursday, buying a net 176.9 billion won ($191.7 million) in shares in the KOSPI, according to data at 0636 GMT, their biggest net purchases since 194.6 billion won worth on June 4. Trade volume reached 519.5 million shares worth 7.8 trillion won compared to 417 million shares worth 7.5 trillion won on Wednesday. Decliners edged out gainers by 402 to 377 with 61 titles ending flat.
The September KOSPI 200 futures index rose 1.95 points to 236.85, while the underlying KOSPI 200 spot index gained 1.32 points to 234.75. The junior and tech-heavy Kosdaq market fell 0.14 percent to finish at 802.87.