Seoul shares ended 2 percent higher on Tuesday, led by bank and construction shares including KB Financial Group after the government announced by fresh economic stimulus measures, but exporters ended lower. The Korea Composite Stock Price Index ended up 2.15 percent at 1,153.35 points after earlier losing as much as 1.3 percent in early morning trade.
The KOSPI has risen for four consecutives sessions, taking its gains to 19 percent since October 29. "Economic measures and the government's apparent determination to rein in the current financial market troubles have had some effect," said Y.S. Rhoo, a market analyst at Hyundai Securities.
"Banks are rising as domestic liquidity is slowly improving, and as yields on certificate of deposits fall. But whether these measures will help solve fundamental problems remain to be seen." KB Financial Group rose 8.32 percent and Shinhan Financial Group gained 11.01 percent. Woori Finance Holdings traded 14.94 percent higher.
Construction issues also ended higher, with GS Construction rising 11.15 percent and Daewoo Engineering & Construction up 14.84 percent. Samsung Electronics fell 0.39 percent and LG Electronics dropped 2.28 percent. Shares in Hynix Semiconductor, the world's No 2 memory chip maker, dropped 6.82 percent after Goldman Sachs lowered its earnings per share estimates on the company through the year 2010, citing delays in an earnings bottom.
"Although we had previously expected earnings could bottom in the third quarter, 2008, we now expect fourth quarter could be the bottom due to weak DRAM prices," Goldman said in its report on Tuesday. Hyundai Motor, the world's No 5 car maker, ended down 3.66 percent after US data showed on Monday that US auto sales plunged 32 percent in October to lows not seen in a quarter-century.
Hyundai Motor said its US sales of cars and light trucks in October fell 33.7 percent from a year earlier. Kia Motors, its smaller affiliate, lost 3.94 percent, after data showed its US sales dropped 40.8 percent. Foreign investors sold a net 447 billion won and institutional investors bought a net 323 billion won. Retail investors bought a net 115 billion won.
Trade volume stood at 598 million shares worth 6.7 trillion won, from 563 million shares worth 7.1 trillion won traded on Monday. Advancers outnumbered decliners 608 to 250, with 38 titles ending unchanged. The KOSPI 200 December futures index rose 2.60 points to 153.15 and the KOSPI 200 spot index gained 2.82 points to 151.63. The junior Kosdaq ended up 3.05 percent at 335.49 points.
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