Seoul stocks close up 0.03 pct in volatile session

(ATTN: ADDS bond yields at bottom)
SEOUL, April 21 (Yonhap) -- South Korean stocks edged up on Tuesday as investors
bought shipyards and tech shares, more than offsetting pullbacks in the financial
sector, analysts said. The local currency fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) rose 0.03 percent, or
0.42 points, to 1,336.81 after plunging to 1,307.95 in early trading. Volume was
heavy at 629.61 million shares worth 6.4 trillion won (US$4.7 billion), with
gainers outpacing losers 412 to 398.
"Overnight plunges in U.S. markets set a gloomy tone for local shares but
investors saw it as a chance to pick up beaten-down shares," said Choi Soon-ho,
an analyst at Eugene Investment & Securities. "Optimism on first-quarter
corporate earnings also seemed to be reflected in market, sending major tech
shares higher."
Shipyards advanced on expectations demand will increase as a Brazilian state-run
oil company plans to buy new vessels. Samsung Heavy Industries jumped 3.41
percent to 31,800 won, while Hyundai Heavy Industries ended up 0.47 percent to
212,500 won.
Second-ranked tech exporter LG Electronics rose 0.95 percent to 106,000 won after
reporting 197.6 billion won in first-quarter net losses, a smaller loss compared
with three months earlier. Flat-panel maker LG Display also gained 0.94 percent
to 32,100 won.
Financial shares, however, weighed on the market as investor sentiment was hurt
by the sharp declines in major banks on Wall Street. KB Financial Group, which
controls top lender Kookmin Bank, plunged 3.12 percent to 37,300 won and Woori
Finance Holdings, the parent for Woori Bank, lost 1.96 percent to 9,520 won.
Steel and auto companies were also among the decliners, with industry leader
POSCO losing 2.3 percent to close at 403,500 won. Top automaker Hyundai Motor
lost 2.12 percent to 64,500 won while its affiliate, Kia Motors, closed down 2.14
percent at 9,590 won after Moody's lowered its long-term debt outlook.
The local currency finished at 1,349.5 won to the dollar, down 14.5 won from
Monday's close, as investor worries over instability in the financial sector
increased, dealers said.
Bond prices, which move inversely to yields, closed higher. The return on
three-year Treasuries fell 0.01 percentage point to 3.69 percent and the
benchmark yield on five-year government bonds lost 0.05 percentage point to 4.27
percent.
kokobj@yna.co.kr
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