(LEAD) Seoul shares end 0.03 pct higher on foreign buying

(ATTN: ADDS bond yields at bottom)
SEOUL, April 7 (Yonhap) -- South Korean stocks closed 0.03 percent higher
Wednesday as the long-streak of foreign buying helped outweigh investors'
profit-taking and caution ahead of rate decisions, analysts said. The local
currency rose against the U.S. dollar.
After range-bound trading, the benchmark Korea Composite Stock Price Index
(KOSPI) rose 0.51 point to close at 1,726.60, the fifth straight sessions of
gains. Trading volume was moderate at 382.5 million shares worth 5.3 trillion won
(U$4.73 billion), with gainers outpacing losers 495 to 297.
"The market seemed to sleep throughout the session. Foreign buying helped the key
index eke out gains," said Kwak Joong-bo, an analyst at Hana Daetoo Securities
Co. "Foreign investors' continued purchase of Seoul stocks managed to offset
institutional sell-offs, which were sparked by redemption of stock-type funds."
The European Central Bank and the Bank of Korea plan to hold its rate-setting
sessions late this week, which analysts say would have limited impacts on the
market as they are expected to keep borrowing costs low.
Foreign investors continued to buy Seoul stocks for the 19th consecutive session
although their buying momentum eased. They bought a net 294.3 billion won worth
of local shares on the main bourse.
Top refiner SK Energy advanced 3.77 percent to 124,000 won after saying that a
consortium including SK Energy, has begun test production of oil and natural gas
in an oil field in Brazil. Its rival S-Oil rose 3.06 percent to 57,200 won.
Shares of ailing Kumho Asiana Group gained ground on prospects that turnaround
plans for the troubled group may go smoothly. Kumho Petrochemcial jumped 6.58
percent to 28,350 won after saying that it swung to a profit of 90.4 billion won
in the first quarter. Asiana Airlines climbed 5.62 percent to 5,070 won.
But tech blue chips traded in negative territory. Market leader Samsung
Electronics shed 1.15 percent to 859,000 won and chip giant Hynix Semiconductor
declined 3.53 percent to 27,350 won.
Bank shares were also weighed throughout the session. Woori Finance fell 2.13
percent to 16,050 won amid speculation that the government may conduct a block
sale of Korea's No. 2 financial services company as part of efforts to help
accelerate the privatization of the group.
The local currency ended at 1,120.50 won, up 2.70 won from Tuesday's close as
foreign investors increased their holdings of Seoul stocks, dealers said.
Bond prices, which move inversely to yields, closed higher. The yield on
three-year Treasury notes fell 0.02 percentage point to 3.82 percent and the
return on benchmark five-year government bonds shed 0.07 percentage point to 4.42
percent.
sooyeon@yna.co.kr
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