Seoul shares rise 1.3 percent

25 Dec, 2009

Seoul shares advanced on Thursday fuelled by technology and crude refining issues including SK Energy, while a rebound in banks following their recent losses lent markets further support. The Korea Composite Stock Price Index (KOSPI) finished up 1.26 percent at 1,682.34 points.
"The won's strength and solid overnight gains in European stocks, particularly financial shares, buoyed sentiment, especially among foreign investors, substantially," said Kim Young-june, a market analyst at SK Securities. "We are also seeing strong programme buying today," Kim added.
Institutions were buyers of a net 385 billion won ($326.9 million) worth of stocks, picking up shares for a fifth consecutive session, while foreign investors bought a net 276.4 billion won, their biggest purchase in two weeks. Liquid crystal display (LCD)-associated issues rose after news Samsung Electronics and LG Display, the world's top two LCD makers, won government approval for their plans to build flat-panel plants in China. Shares in LCD parts maker Top Engineering ended up 3.64 percent, helped further by news of orders awarded from LG Display.
"Expansion of LCD makers' production in China comes as an opportunity for parts makers to expand their output as well," said Lee Seung-jin, an analyst at Tong Yang Securities. Samsung Electronics ended up 0.77 percent and LG Display rose 0.91 percent.
Crude refiners rose amid recent signs of improvement in refining margins, according to HI Investment Securities analyst Lee Hee-cheol. South Korea's top refiner SK Energy rose 2.27 percent and S-Oil advanced 2.9 percent. Elsewhere retail issues rose across the board amid expectations of strong sales for the holiday season.
Shares in Shinsegae Co Ltd, South Korea's top retailer by market value, rose 2.12 percent and Lotte Shopping climbed 2.73 percent. On Media ended up 15 percent after CJ O Shopping, the TV and Internet shopping unit of CJ Group, said it bought a 55.17 percent stake in the cable channel operator worth 434.5 billion won ($369.3 million).
Shares in CJ O Shopping advanced 3.17 percent. Banks outperformed after their recent losses, with KB Financial Group gaining 1.7 percent and Woori Finance Holdings up 2.37 percent. Retail investors sold a net 631 billion won worth of shares.
Advancers outnumbered decliners 520 to 281, with 70 issues ending flat. The KOSPI 200 March futures index rose 3.35 points to 221.10, and the KOSPI 200 spot index gained 2.72 points to 221.67. The junior Kosdaq market advanced 0.54 percent to close at 511.19.

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