Seoul stocks end up 2.77 pct on strong tech gains

SEOUL, Feb. 4 (Yonhap) -- South Korean stocks closed 2.77 percent higher
Wednesday as Samsung Electronics and other tech companies soared on strong
foreign buying, analysts said. The local currency gained against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) soared 32.17 points to
1,195.37. Volume was moderate at 443.03 million shares worth 5.64 trillion won
(US$4.09 billion), with earners outpacing losers 641 to 195.
Foreign investors scooped up tech shares and automakers, extending their buying
streak to a sixth-session and providing upward momentum to the key index.
"IT shares lured overseas investors after their Taiwanese competitors were
reported to undergo an industry-wide restructuring on falling profits," said Yun
Ji-ho, an analyst at Hanwha Securities.
Chip behemoth Samsung Electronics advanced 5.71 percent to a one-month high of
518,000 won on news of Taiwan's tech overhaul. LG Electronics also gained 6.56
percent to 78,000 won following a report it became the world's No. 3 handset
seller, beating Motorola last year.
Shares of Hyundai Motor and Kia Motors also gathered substantial ground as their
January sales in the U.S. increased 14 percent and 3.5 percent, respectively,
despite an overall drop in demand. Hyundai surged 8.01 percent to 51,900 won and
Kia spiked 11.74 percent to end at 8,950 won.
Korea Exchange Bank, which is controlled by U.S. Lone Star Funds, dropped 0.91
percent to 6,530 won after reporting its 2008 earnings shrank 16.6 percent due to
more provisions against bad loans.
The local currency ended at 1,378.5 won to the dollar, up 11 won from Tuesday's
close, as the U.S. Fed's extension of a currency swap line with the Bank of Korea
mitigated the dollar shortage concern, dealers said.
pbr@yna.co.kr
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