Seoul shares ended up 1.4 percent on Wednesday, posting their highest close in a week and nearly recovering losses suffered on fears sparked by the Dubai debt situation, with technology and banking plays fuelling gains. The Korea Composite Stock Price Index (KOSPI) finished up 21.91 points at 1,591.63, after rising as high as 1,597.12 points, close to the psychologically significant 1,600-point level.
"A continued rebound in US and European stocks and a significant easing of Dubai worries have helped restore confidence," said Hong Soon-pyo, market analyst at Daishin Securities. "The KOSPI will probably return to 1,600 points, where it will be met with primary resistance. If it succeeds in breaching that level, the next point of resistance will be around 1,620," Hong added, referring to the KOSPI's 60-day moving average. Memory chip makers gained, helped by a rise in the US semiconductor index. Samsung Electronics the world's No 1 memory chip maker, rose 1.36 percent and Hynix Semiconductor rallied 6.37 percent.
KT Corp, South Korea's dominant fixed-line operator and No 2 mobile phone operator, slipped 0.13 percent, and KT&G rose a mere 0.59 percent. The Baltic Dry Index, which tracks the cost of shipping key commodities, weighed on shipping issues. Hyundai Merchant Marine fell 1.44 percent and Hanjin Shipping ended flat. Brokerages rose following recent steep losses and amid the market's steady recovery. Woori Investment & Securities ended up 4.32 percent and Hyundai Securities gained 4.33 percent.
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