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Seoul shares erased earlier losses to end up 0.7 percent on Tuesday, buoyed by rises in US index futures and Doosan E&C, which spiked on news of its decision to absorb unlisted Doosan Mecatec. The Korea Composite Stock Price Index rose 11.7 points to 1,755.03 points.
Institutional investors were buyers of a net 115.2 billion won ($97.06 million). Doosan E&C jumped by the daily limit of 15 percent after the company said it planned to absorb unlisted Doosan Mecatec, which specialises in plant construction. Korea Exchange Bank outperformed, gaining 0.82 percent, after Australia and New Zealand Banking Group moved closer towards a possible bid for a 57.27 percent stake in KEB worth about $4 billion at current market prices. Hyundai Motor Co fell 1.5 percent after a local media report that parent Hyundai Motor Group would participate in bidding for Hyundai Engineering & Construction Co Ltd next month.

Copyright Reuters, 2010

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