Seoul shares rose on Friday led by techs including Samsung Electronics, which hit a fresh historical high, and shipbuilders such as Daewoo Shipbuilding. The Korea Composite Stock Price Index (KOSPI) finished up 0.95 percent at 1,701.80 points.
"I think you could sum up today's market moves as the Intel effect. Gains were led by technology issues such as Samsung Electronics and Hynix, which were boosted by Intel's solid results and first quarter outlook," said Kim Young-june, a markets analyst at SK Securities. "Given that markets have risen to 1,700 points rather rapidly, we may not see markets gaining at a similar pace next week," Kim added.
Shares in Samsung Electronics, the world's No 1 memory chip maker, finished up 1.81 percent to 842,000 won after hitting a fresh historical high of 843,000 won. "Our six-month target price on Samsung Electronics is 1,010,000 won, and on Hynix 33,000 won. The memory chip outlook through the first half of this year is rosy, and Intel's solid set results strengthened it," said Koo Ja-woo, an analyst at Kyobo Securities.
"Some of the risks would be possible economic double-dips, and global governments' exit strategies," Koo added. Shares in Hynix Semiconductor, the world's No 2 memory chip maker, advanced 2.55 percent to 26,100 won, helped further by solid gains in the key US semiconductor index. Shipbuilders rallied amid hopes the battered industry is headed for a turnaround.
Shares in Hyundai Heavy Industries jumped 6.73 percent and Samsung Heavy Industries advanced 4.04 percent. "Shares are rallying amid hopes the industry may be headed for a recovery and eventually for the kind of strength seen in 2007," said Kim Soo-jin, an analyst at Eugene Investment & Securities.
"But at this point, I'm afraid it still faces many challenges, particularly with Chinese rivals emerging fast as a competitive threat," Kim added. Daewoo Shipbuilding spiked 14.99 percent, lifted further by comments from POSCO on Thursday following its earnings announcement. POSCO said its top priority was to buy a 68 percent stake in Daewoo International, followed by majority stakes in Daewoo Shipbuilding and Daewoo Engineering & Construction.
"Markets have known for some time POSCO is seriously interested in Daewoo International, but they didn't know how serious POSCO was about Daewoo Shipbuilding. The confirmation of its interest is pushing shares higher," said Kang Young-il, an analyst at HMC Investment & Securities. Shares in Daewoo International rose 3.14 percent.
Lotte Shopping Co Ltd and Shinsegae Co Ltd fell 0.81 percent and 1.71 percent respectively after news South Korea's No 1 and No 2 retailers were interested in taking over GS Retail's department store and mart units. Institutions were sellers of a net 111.3 billion won ($99.20 million) worth of stocks, and foreign investors picked up a net 366.5 billion won. Retail investors offloaded a net 222.2 billion won worth of stocks.
Advancers outnumbered decliners 462 to 314 with 92 issues ending flat. Trading volume stood at 410 million shares worth 6.38 trillion won, compared with 428.6 million shares worth 6.1 trillion won on Thursday. The KOSPI 200 March futures index rose 0.70 points to 223.00, and the KOSPI 200 spot index gained 2.02 points to 223.21. The junior Kosdaq market advanced 1.41 percent to close at 549.97.