South Korean plant builders, led by Doosan Heavy Industries, jumped on Tuesday, pulling Seoul shares higher in quiet trade on expectations a Korean consortium was close to winning a $40 billion deal from the Middle East.
Some analysts said the United Arab Emirates was likely to award the multi-billion-dollar contract to South Korean companies in a consortium to build several nuclear reactors, trumping a group comprised of General Electric and Japan's Hitachi, and another including GDF Suez and Total, while others questioned the reliability of the market talk.
The Korea Composite Stock Price Index added 0.69 percent to 1,655.54 points, rebounding 8.6 percent from November 27 when it tumbled to an almost four-month low. Korea Power Engineering Co Inc (KOPEC), a nuclear power plant designer, extended its bullish run, surging by the daily limit to a record of 41,550 won just over a week after its market debut.
KOPEC's parent company, Korea Electric Power Corp, also took part in the Korean consortium for the pending UAE order, along with Hyundai Engineering and Construction and Samsung C&T Corp LG Electronics Inc rose 3 percent to close at its strongest level in more than two months. An technology analyst said shares of mobile phone and TV makers factored in expectations that earnings in coming quarters would be better than expected.
POSCO gained 1.7 percent after the company said it had failed to reach an agreement with visiting top managers of Thainox over a possible acquisition of Southeast Asia's largest stainless steel producer, but said it was open to further negotiations.
Woori Finance Holdings rose 2.4 percent after the Korea Economic Daily reported that a Qatar sovereign wealth fund had shown interest in the country's third-largest banking group in a meeting with South Korean government officials, citing an unnamed industry source.
Foreign investors picked up a net 111 billion won ($93.63 million) worth of shares on the main board, and local institutions bought a net 123 billion. Individual investors sold a net 193 billion won. Trading volume increased to 465 million shares worth 3.7 trillion won, compared with 277.4 million shares with a turnover of 3.7 trillion won on Monday. The junior Kosdaq market shed 1.02 percent to close at 512.78.