Seoul shares up

Seoul shares rose on Thursday, led by key technology and auto counters including LG Display Co Ltd and Hyundai Motor Co, while reaction was muted to the Bank of Korea's decision to keep its policy interest rate unchanged. The Korea Composite Stock Price Index finished up 1.26 percent at 1,899.76 points.
"The broader market's reaction to the rate decision was pretty quiet. It does not come as a great surprise, with the upcoming G20 meeting and the won's latest strength," said Lee Sun-yeb, a market analyst at Shinhan Investment Corp. South Korea's central bank held interest rates steady for a third consecutive month on Thursday in the face of concern about faltering global demand and a rising won. "Investor views on third quarter earnings is growing more cautious following disappointing guidance from Samsung Electronics and the number from POSCO most recently," said Bae Sung-young, a market analyst at Hyundai Securities.
Brokerages and construction companies, with substantial bank loans, were lifted by the decision. Hyundai Engineering & Construction Co Ltd gained 2.7 percent. Samsung Securities Co Ltd climbed 2.4 percent and Woori Investment & Securities Co Ltd rose 3.9 percent.
But insurers, with substantial holdings in interest-bearing assets, fell amid investor disappointment over the rate decision. Samsung Life Insurance Co Ltd retreated 1.9 percent and Korea Life Insurance slipped 1.6 percent. LG Display rose 3.1 percent amid expectations of solid sales in China and the United States, analysts said. "Flat panel televisions are said to have sold well in China over its recent long holiday, helping to substantially reduce its inventory there," said John So, an analyst at Shinhan Investment Corp.
The likelihood of US economic support measures also pointed to firm demand in the United States, particularly over the upcoming Thanksgiving holiday, So added. Gains by automakers also lent support. Hyundai Motor advanced 3.4 percent at the record high of 167,500 won. Kia Motors Corp rose 1.5 percent. Retail stocks bounced following their recent streak of losses.
Shares of Shinsegae Co Ltd, South Korea's second biggest retailer, ended up 2.2 percent after two losing sessions. Hyundai Home Shopping, which operates shopping outlets on cable channels and over the Internet, ended up 4.6 percent.