Seoul stocks end up 1.18 pct on bargain hunting

(ATTN: ADDS bond yields at bottom)
By Park Bo-ram
SEOUL, June 22 (Yonhap) -- South Korean stocks closed 1.18 percent higher Monday
as institutional and foreign investors hunted for bargains, analysts said. The
local currency weakened against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) climbed 16.37 points to
1,399.71. Volume was light at 394.6 million shares worth 4.1 trillion won
(US$3.22 billion), with gainers outpacing losers 514 to 309.
After scurrying between tight gains and losses, the key index expanded its
advance as international investors turned net buyers of local shares, snapping
seven days of sell-offs.
"Institutional buyers' bargain-hunting, coupled with foreign buying, caused a
technical rebound in the market as they increased bets on an economic recovery,"
said Kwak Joong-bo, an analyst at Hana Daetoo Securities.
Large-cap electronic shares gained substantial ground as upbeat forecasts on
their second-quarter earnings stoked investor sentiment.
Top memory-chip maker and market leader Samsung Electronics gained 2.31 percent
to 575,000 won, and smaller chip-maker Hynix Semiconductor climbed 3.77 percent
to settle at 13,750 won.
Financial shares were also boosted on solid purchases by foreign and
institutional investors.
Third-largest financial firm KB Financial Group, which is allegedly considering
an acquisition of Korea Exchange Bank, jumped 6.12 percent to 42,450 won.
State-run Industrial Bank of Korea soared 3.32 percent to 10,900 won on a media
report that the top lender to smaller firms is mulling to buy financial unit of
the national postal service agency.
Steel producers also finished stronger, with POSCO rising 1.2 percent to end at
422,000 won, underpinned by solid foreign buying.
The local currency ended at 1,274.5 won against the dollar, down 6.1 won from
Friday's close. The local unit extended its losing streak to a fourth session as
global demand for dollars increased due to rising oil prices, dealers said.
Bond prices, which move inversely to yields, closed lower. The return on
three-year Treasuries rose 0.03 percentage point to 4.20 percent and the
benchmark yield on five-year government bonds also climbed 0.03 percentage point
to 4.75 percent.
pbr@yna.co.kr
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