Seoul shares end up 2.32 pct on Greek bailout reports

SEOUL, May 31 (Yonhap) -- South Korean stocks finished 2.32 percent higher Tuesday as foreign investors scooped up shares following reports that Europe made a step forward to rescue Greece, analysts said. The local currency climbed against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) soared 48.68 points to a near two-week high of 2,142.47. Trading volume was moderate at 295 million shares worth 9.15 trillion won (US$8.47 billion) with gainers trumping losers 528 to 290. "Market sentiment improved after reports that eased concerns about Europe's sovereign debts that have been dominating the bearish market this month," NH Investment & Securities Co. analyst Kim Hyung-ryoul said. "Most large-cap shares and market leaders gained ground." Overseas media reported that officials from European Union nations, including Germany, agreed to move towards drafting another bailout package for debt-ridden Greece to prevent the country from falling into default. The reports underpinned investor sentiment and sent the euro higher against the U.S. dollar. Foreign investors bought a net 489.6 billion won worth of shares, the largest daily net purchase in May. Institutional investors added a net 182.3 billion won. Nearly all sectors rose, with shipbuilders, chemicals makers and commodity producers staging the strongest rebound. The world's largest shipyard, Hyundai Heavy Industries, spiked 10.75 percent to 505,000 won after it announced that it won a $600 million order from Greece. Top chemicals maker LG Chem jumped 4.9 percent to 535,000 won while Korea Zinc rose 5.15 percent to 408,000 won. Top logistics company Korea Express, whose major stake is scheduled to be put up for sale next month, finished 6.14 percent higher at 93,400 won after local brokerages recommended its shares. The local currency closed at 1,079.2 won to the greenback, up 1 won from Monday's close, as eased Greece debt worries stoked investor appetite for risks, dealers said.