Seoul shares close up over one percent, techs rally

27 Mar, 2004

South Korean shares ended more than one percent higher on Friday, as chip giant Samsung Electronics Co Ltd and other technology shares rallied after a healthy rebound on Wall Street.
Shares in the world's biggest maker of memory chips, Samsung Electronics, rose 1.87 percent to end at 545,000 won, tracking a three percent rise in the tech-laced US Nasdaq on Thursday.
The benchmark Korea Composite Stock Price Index (KOSPI) closed 1.24 percent higher at 863.95 points, easing off from session high of 873.01 points on moderate profit-taking by retail investors.
"Investors' fears over recent weakness in the US markets eased considerably after US shares managed to turn around," said Kim Hyun-tae, a fund manager at Woori Investment Trust Management Co.
"Technical motives were one of the main factors behind today's rebound. Investors are keenly watching whether US shares continue to rise into next week, signalling the recent correction is at an end."
Hynix Semiconductor Inc, the world's third-biggest maker of memory chips, moved 2.36 percent higher to close at 10,850 won and display maker Samsung SDI Co rose by 1.58 percent to 160,500 won.
"The overall mood is totally different from how we felt yesterday," said Hwang Chang-joong, an analyst at LG Investment & Securities.
"Players look likely to turn more positive about first-quarter corporate earning results."
Stabilising oil prices encouraged investors to scoop up shipping firms shares battered by concerns over the impact of stronger fuel prices.
Hanjin Shipping Co shares gained 3.67 percent to end at 19,750 won and Hyundai Merchant Marine Co rose 4.25 percent to 7,850 won.
Shares in SK Corp jumped 4.96 percent to 39,150 won, boosted by hopes that corporate transparency would improve after the oil refiner announced it was forming special committees to tackle the issue.
However, shares in Hana Bank continued their correction after peaking at 29,050 won on March 9. The shares slid 3.35 percent to close at 24,550 won.
The government plans to sell its stake in the country's fourth-biggest bank, with Singapore's Temasek Holdings and several other investors expressing interest in purchasing the shares.
Trade volume totalled at 298.7 million shares valued at 2.51 trillion won. Gainers topped losers 473 to 243 with 86 stocks unchanged.
The June KOSPI 200 futures index was up 2.10 points at 114.70 and the underlying KOSPI 200 spot index gained 1.48 points to 113.64.
The junior Kosdaq was up 0.96 percent at 426.02. Foreign investors bought a net 84.5 billion won in shares and institutional investors bought a net 116.9 billion won.
Retail investors sold a net 226.6 billion won worth of shares.

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