Seoul shares surge 2.89 pct on European hopes

SEOUL, Oct. 7 (Yonhap) -- South Korean stocks jumped 2.89 percent Friday on the eurozone's move to rescue ailing banks and hopes for strong third-quarter corporate earnings, analysts said. The local currency rose against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) surged 49.45 points to 1,759.77, marking the second consecutive bullish close. Trading volume was moderate at 329.7 million shares worth 7.4 trillion won (US$6.3 billion) with gainers outnumbering losers 683 to 190.
"Investor sentiment was lifted as European leaders started to push forward the plan to provide loans to the region's ailing lenders," said Kwak Jung-bo, an analyst from Samsung Securities Co. "It will relieve the shock of a possible default of Greece, calming investor fears over a global financial crisis."
Foreigners scooped up a net 371 billion won worth of shares to lead the rally, along with institutions that bought a net 450 billion won. Retail investors sold a net 874 billion won.
The market also got a boost from Samsung Electronics' forecast-beating earnings estimate for the July-September period, which added to optimism ahead of the third-quarter earnings season, Kwak said.
Earlier in the day, Samsung, the world's top memory chip maker, put its quarterly operating profit at 4.2 trillion won. Samsung rose 0.58 percent to close at 860,000 won.
Banks were among the biggest winners with Hana Financial Group jumping 2.54 percent to 36,400 won and Korea Exchange Bank (KEB) soaring 6.46 percent to 7,750 won. Hana Bank is set to complete its purchase of KEB following a Seoul court's decision.
Korea Zinc, the world's second-largest zinc smelter, shot up nearly by the daily limit of 15 percent to close at 282,500 won on a gold price hike.
Builders also joined the bullish move, with leading Hyundai Engineering & Construction rising 6.34 percent to 57,000 won and GS Engineering & Construction hiking 11.55 percent to 84,000 won.
The local currency closed at 1,178.5 won against the greenback, up 12.8 won from Thursday's close, following the European Central Bank's freezing of its key rate, dealers said.