Seoul stocks end 0.78 pct up on bargain hunting

(ATTN: ADDS bond yields at last para)
SEOUL, May 13 (Yonhap) -- South Korean shares closed 0.78 percent higher
Wednesday as investors hunted for bargains following a loss in the previous
session, analysts said. The local currency fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) rose 11.01 points to
1,414.52. Volume was heavy at 705.97 million shares worth 6.93 trillion won
(US$5.56 billion), with gainers outpacing losers 538 to 300.
"Considering last session's retreat as a healthy sign, investors went on
bargain-hunting, sending the key index higher," said Kwak Joong-bo, an analyst at
Hana Investment & Securities.
Retail investors and institutions were net buyers, buying stocks worth a combined
70 billion won, while foreigners remained net sellers, with their sales amounting
to 65.8 billion won.
Steelmakers received a boost on the news that materials prices are stabilizing.
Hyundai Steel surged 3.16 percent to 62,000 won.
State power monopoly Korea Electric Power Corp. rose 0.83 percent as it is
expected to post better earnings in the future on lower fuel prices.
The local currency ended at 1,244 won against the dollar, down 1.4 won from
Tuesday's close, as foreign investors sold the Korean currency, dealers said.
Bond prices, which move inversely to yields, closed lower. The return on
three-year Treasuries gained 0.02 percentage point to 3.85 percent, and the
benchmark yield on five-year government bonds rose 0.02 percentage point to 4.53
percent.
ygkim@yna.co.kr
(END)