Seoul shares up 0.55 pct on brokerage, shipyard gains

(ATTN: ADDS bond yields at bottom)
SEOUL, July 17 (Yonhap) -- South Korean stocks ended up 0.55 percent Friday as
investors picked up brokerage and shipyard shares, taking a cue from overnight
gains in U.S. markets, analysts said. The local currency rose against the U.S.
dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) gained 7.88 points to
1,440.1, advancing for the fourth consecutive day. Volume was moderate at 397.19
million shares worth 4.44 trillion won (US$3.52 billion), with winners
outnumbering losers 473 to 307.
"The market started higher on overnight U.S. gains but investors seemed to feel
burdened by recent rallies, unloading shares to take profits," said Lee
Seung-woo, an analyst at Daewoo Securities.
The index rose as much as 13.38 points in early trading but retailers pared
earlier gains by dumping over 300 billion won worth of stocks in net value.
Institutions and foreigners bought more than they sold in the equity market.
Financial companies ended higher, with major brokerages gaining substantial
ground. Leading brokerage Samsung Securities jumped 4.03 percent to 72,200 won
while its rival Mirae Asset Securities advanced 3.03 percent to 71,400 won.
Telecom and building issues also joined the climbers. Leading fixed-line
communications service provider KT rose 1.5 percent to 37,250 won and top builder
Daewoo Engineering & Construction surged 4.53 percent to close at 12,700 won.
Tech exporters, however, closed mixed. LG Electronics advanced 3.66 percent to
127,500 won but industry leader Samsung Electronics lost 0.59 percent to 670,000
won after rallying for the previous three trading sessions.
On Thursday, U.S. markets closed up on tech rallies and improved earnings
outlooks. The Dow Jones industrial average rose 1.11 percent and the tech-laden
Nasdaq composite index gained 1.19 percent.
The local currency ended at 1,259.5 won against the dollar, up 6.2 won from
Thursday's close, as optimistic economic outlooks led to an increase in demand
for riskier investments, dealers said.
Bond prices, which move inversely to yields, closed sharply lower. The return on
three-year Treasuries jumped 0.11 percentage point to 4.10 percent, but the
benchmark yield on five-year government bonds also rose 0.10 percentage point to
4.61 percent.
kokobj@yna.co.kr
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