(LEAD) Seoul shares up 0.39 pct on European rescue deal

(ATTN: ADDS bond yields at bottom)
SEOUL, Oct. 28 (Yonhap) -- South Korean stocks closed 0.39 percent higher on Friday as Europe's debt plan buoyed investor sentiment here, but earlier gains were pared down on profit-taking, analysts said. The local currency climbed against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) rose 7.44 points to 1,929.48. Trading volume was heavy at 504.2 million shares worth 10.0 trillion won (US$9.1 billion), with gainers outnumbering decliners 435 to 383.
Foreigners and institutions snapped up shares, but retail investors dumped shares worth around 670.5 billion won.
"Overall, Thursday's announcement helped shore up investor sentiment. There was some profit taking, but that's natural given the KOSPI's surge in such a short period," said Kim Young-jun, an analyst at SK Securities Co.
European leaders announced a set of measures aimed at containing the region's nagging debt problem, which include plans to lower Greek's debt burden by 50 percent and expand a regional rescue fund.
"Next week, there are some key events such as the Group of 20 summit and a Federal Open Market Committee meeting. Whether the U.S. Federal Reserve will take actions to prevent a double-dip will be a factor to keep eyes on," Kim said.
Shares gathered ground across the board, with market bellwether Samsung Electronics advancing 2.27 percent to 945,000 won after posting better-than-expected business results in the third quarter.
The tech behemoth also painted a rosy picture for the fourth quarter, forecasting that earnings could go up as mobile device sales will remain strong and TV shipments will increase.
Financials closed bullish on hopes the eurozone rescue plan will help stave off uncertainties in the finance industry. KB Financial Group jumped 4.17 percent to 45,000 won and state-run Woori Finance Holdings surged 5.66 percent to 11,200 won.
Top steelmaker POSCO ended up 1.56 percent at 391,000 won, extending its winning streak to a sixth straight session.
In contrast, No. 1 mobile carrier SK Telecom slumped 4.09 percent to 152,500 won on uncertainties over its acquisition of the world's second-largest chip maker Hynix Semiconductor. The chip titan also lost 3.78 percent to 22,900 won.
Hyundai Mobis, an auto-parts affiliate of top carmaker Hyundai Motor, retreated 2.55 percent to 344,000 won despite a 10.3 percent on-year rise in its third-quarter earnings.
The local currency ended at 1,104.9 won to the greenback, up 10.3 won from Thursday's close amid renewed hopes on the eurozone's efforts to quell its debt crisis, dealers said.
Bond prices, which move inversely to yields, closed marginally lower. The yield on three-year Treasuries gained 0.01 percentage point to 3.54 percent and the return on the benchmark five-year government also added 0.01 percentage point to 3.67 percent.
mil@yna.co.kr