Seoul shares end 0.12 pct higher on U.S. gains

(ATTN: ADDS bond yields at bottom)
By Kim Soo-yeon
SEOUL, June 30 (Yonhap) -- South Korean stocks closed 0.12 percent higher Tuesday
as investor sentiment was underpinned by overnight gains in U.S. markets amid
rising prospects for an economic recovery, analysts said. The local currency rose
against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) advanced 1.62 points to
1,390.07. Volume was moderate at 462.6 million shares worth 4.67 trillion won
(US$3.67 billion), with gainers outpacing losers 413 to 395.
"Institutional investors picked up local stocks, propping up the market. But in
recent sessions, overall investors took a breather to find clues about the
direction of the market," said Bae Sung-young, an analyst at Hyundai Securities
Co.
The Seoul bourse got off to a strong start on the back of overnight gains in U.S.
markets, but later it traded in a narrow range without clear leads.
Institutional investors bought local stocks in an apparent move to make their
investment portfolios look better at the end of the quarter.
Financial stocks traded in positive territory. KB Financial Group, which controls
top lender Kookmin Bank, advanced 1.3 percent to 42,800 won and its rival Shinhan
Financial Group added 1.42 percent to 32,250 won.
But tech blue chips lost ground on profit-taking as they sharply rose in recent
sessions due to expectations for better second-quarter earnings. Market leader
Samsung Electronics shed 1 percent to 592,000 won and flat panel giant LG Display
lost 1.4 percent to 31,800 won.
Top builder Daewoo Engineering & Construction Co. fell 6.18 percent to 12,900 won
and Ssangyong Motor, the country's smallest carmaker, declined by the daily limit
of 15 percent to 1,435 won amid an ongoing labor dispute.
U.S. markets gained ground Monday as rising oil prices lifted energy shares. The
Dow Jones industrial average advanced 1.08 percent and the tech-laden Nasdaq
composite index added 0.32 percent.
The local currency ended at 1,273.9 won against the greenback, up 11.9 won from
Monday's close, as offshore investors increased their holdings of Seoul stocks,
dealers said.
Bond prices, which move inversely to yields, closed lower. The return on
three-year Treasuries rose 0.06 percentage point to 4.16 percent and the
benchmark yield on five-year government bonds gained 0.04 percentage point to
4.64 percent.
sooyeon@yna.co.kr
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