Seoul shares end firm

Seoul shares ended firmer after volatile trade on Wednesday as caution prevailed before the announcement of a rate decision by the US Federal Open Market Committee, but gains in technology issues including LG Display fuelled the main index. The Korea Composite Stock Price Index (KOSPI) finished up 0.24 percent at 1,363.79 points.
"Shares have recouped yesterday's losses as earlier worries about the economy on the World Bank's comments eased a bit. Programme buying is also helping." said Hanwha Securities market analyst Lim Nara.
"Technology issues' gains are helping markets today on the back of strengthening earnings hopes. It seems market participants are expecting a turnaround near the end of second quarter," Lim added. LG Display, which was further helped by positive brokerage notes, led the rally.
"Panel prices are expected to continue strengthen in the third quarter helping the company post improvements in earnings," Eugene Investment & Securities said in a note on Wednesday. The world's No 2 LCD maker finished up 2.72 percent. Samsung Electronics, the world's No 1 LCD maker, advanced 0.87 percent.
Consumer electronics giant LG Electronics advanced 3.15 percent. SBS rallied 4.95 percent on hopes of changes in media laws, which the South Korean parliament is set to review in its extraordinary session starting this week. Changes proposed to current media laws are expected to loosen regulations governing broadcasting companies and may also allow companies to make larger investments in the broadcasting business, analysts said.
"If the changes are accepted, larger corporations and even newspaper companies will be able to enter the broadcasting business, and this is likely to enlarge the pie," said KB Investment & Securities analyst Choi Hoon. "If more aggressive forms of changes are accepted, such as allowing broadcasters to air commercials during programmes, this will be a huge positive for SBS," Choi added.
LG Household & Health Care Ltd climbed in anticipation that the maker of household goods and cosmetics will post strong earnings for the April-June period on growing cosmetics sales. "The cosmetics sector has not been affected by the global economic downturn. Rather, the relatively lower won value has brought more foreign visitors into South Korea since last year, and it has helped domestic sales," Goodmorning Shinhan Securities analyst Kang Hee-seung said.
LG Household advanced 3.01 percent. Foreign investors sold a net 116.6 billion won ($91.11 million) worth of shares. Institutions, which were net buyers intraday, sold a net 48.4 billion won worth of shares, while retail investors bought a net 139.1 billion won. Decliners led advancers 444 to 346, with 87 unchanged.
Trading volume stood at 423.5 million shares worth 4.4 trillion won, compared with 490 million shares worth 4.8 trillion won on Tuesday. The KOSPI 200 September futures index rose 0.40 points to 174.00, and the KOSPI 200 spot index went up 0.76 points to 175.08. The junior Kosdaq market ended 0.61 percent lower at 495.00 points.