Seoul stocks up 0.74 pct on U.S. stimulus plan

(ATTN: ADDS bond yields at bottom)
SEOUL, Jan. 29 (Yonhap) -- South Korean stocks closed up 0.74 percent Thursday as
investor sentiment was buoyed by the passage of a massive U.S. stimulus package,
analysts said. The local currency lost against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) rose 8.58 points to
1,166.56. Volume was moderate at 378.52 million shares worth 4.78 trillion won
(US$3.46 billion), with gainers outpacing losers 479 to 324.
"Stocks continued to rise for a second day, driven by overnight gains in global
markets," said Choi Soon-ho, an analyst at Eugene Investment & Securities. "Banks
and brokerages sent the market higher, though the gains were pared later as
retail investors locked in profits."
Investors seemed to be shrugging off bleak economic indicators and lackluster
corporate earnings, expecting that increased liquidity and diverse pump-priming
measures worldwide will help boost beaten-down stocks here, Choi added.
The House of Representatives passed the US$819 billion stimulus bill Wednesday
night, giving the world's largest economy a much-needed shot in the arm.
Financial shares were among the sharp gainers. KB Financial Group, a holding
company for top lender Kookmin Bank, soared 3.95 percent to 36,800 won, while
Shinhan Financial Group, jumped 3.27 percent to close at 28,400 won.
Chipmakers ended higher for a second session on eased concerns over competition
after a major German rival filed for insolvency protection the previous day.
Leading chipmaker Samsung Electronics advanced 2.05 percent to 498,500 won after
a 10.52 percent surge the previous day.
Automakers also closed up on expectations that U.S.-led economy-boosting efforts
will lead to a hike in overseas demand. Top carmaker Hyundai Motor jumped 3.19
percent to 48,500 won. and its affiliate Kia Motors was up 2.39 percent to 7,700
won.
Telecoms, however, ended in negative territory, giving up most of gains the
logged the previous day. Top mobile carrier SK Telecom lost 2.75 percent to
212,000 won, while leading fixed-line and broadband service provider KT fell 2.38
percent to 40,950 won.
The local currency ended at 1,378.5 won to the dollar, down 2.4 won from
Wednesday's close, on increased demand for dollars.
Bond prices, which move inversely to yields, closed sharply lower. The return on
three-year Treasuries jumped 0.05 percentage point to 3.41 percent and the
benchmark yield on five-year government bonds went up 0.04 percentage point to
3.91 percent.
kokobj@yna.co.kr
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