Seoul shares jump 4.83 pct on foreign buying

SEOUL, Aug. 16 (Yonhap) -- South Korean stocks soared 4.83 percent on Tuesday as foreigners shifted to net buyers on eased woes over a U.S. economic downturn and the European debt crisis, analysts said. The local currency gained ground against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) jumped 85.56 points from Friday to close at 1,879.87. Trading volume was heavy at 413 million shares worth 6.9 trillion won (US$6.45 billion), with gainers far outnumbering losers 800 to 81. The South Korean financial markets were closed Monday for Liberation Day.
"It's time to go up. Last week, the stock market was hit hardest by external factors and now it responded to overnight rallies in Wall Street and Europe," said Lee Young-won, an analyst at HMC Investment Securities Co. "There are still some uncertainties remaining, but policy makers in Europe and the U.S. are trying to soothe the market. It worked."
U.S. stocks rallied on Monday on big takeover deals, including Google's $12.5 billion deal to buy Motorola Mobility.
Lee said that it remains to be seen whether investor sentiment has been fully recovered. But he said it will not take much time for the South Korean stock market to reach the 2,000-point mark again. It slipped below the level on Aug. 5.
Foreigners scooped up a net 661 billion worth of shares, ending a 10-session selling streak, while institutions and retail sellers offloaded a net of 588 billion won.
Shares gained across the board, with blue-chip exporters leading the way. Samsung Electronics, the world's second-largest mobile phone maker, gained 6.08 percent to 750,000 won and its smaller rival LG Electronics finished at 65,000 won, up 0.31 percent from Friday's close.
Top shipyard Hyundai Heavy Industries climbed 4.56 percent to 366,500 won and leading carmaker Hyundai Motor surged 7.98 percent to finish at 203,000 won.
Refiners were also bullish, with market leader SK Innovation soaring 6.84 percent to 164,000 won.
The local currency closed at 1,070 won against the greenback, up 8.5 won from Friday's close, as foreign investors snapped up shares, dealers said.
brk@yna.co.kr