(LEAD) Seoul stocks end up 2.67 pct on earnings hopes

(ATTN: ADDS bond yields at bottom)
By Park Bo-ram
SEOUL, July 20 (Yonhap) -- South Korean stocks closed 2.67 percent higher Monday,
buoyed by corporate earnings hopes and relieved concerns over the feared failure
of a big U.S. bank, analysts said. The local currency surged against the U.S.
dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) jumped 38.41 points to a
10-month high of 1,478.51, marking a five-day gaining streak. Volume was moderate
at 498.9 million shares worth 6.2 trillion won (US$4.95 billion), with winners
outnumbering losers 665 to 157.
"The market surge was fueled by sustained second-quarter earnings hopes," said
Lee Kyoung-soo, an analyst at Taurus Securities. "The key index is expected to
come off its two months of range-bound trading."
Investors were also encouraged by news that troubled lender CIT Group is set to
reach an agreement with its bondholders for $3 billion in emergency funding in a
bid to avoid a bankruptcy.
Large-cap tech shares led the gain. Chip giant Samsung advanced 2.99 percent to
690,000 won and consumer electronics giant LG Electronics surged 4.31 percent to
133,000 won. Samsung and LG are slated to report their second-quarter earnings
this week.
Memory-chip behemoth Hynix Semiconductor, which is also scheduled to release
earnings this week, jumped 7.05 percent to end at 16,700 won.
Financial firms also rose on better-than-expected earnings predictions. KB
Financial Group, the holding company for top lender Kookmin Bank, soared 6.16
percent to 53,400 won and Hana Financial Group, which controls Hana Bank, jumped
6.99 percent to 30,600 won.
Car makers gathered substantial ground, boosted by reviving consumer spending at
home and abroad. Largest auto maker Hyundai Motor surged 3.72 percent to end at
80,800 won.
Ssangyong Motor, the smallest auto firm now under court receivership, added 1.43
percent to 1,770 won on a planned police intervention to end an occupation of its
factory by fired workers.
Bullish stock trading sent brokerage shares rising sharply with biggest brokerage
house Daewoo Securities closing 5.79 percent higher to 22,850 won.
The South Korean won finished 1,250.2 won versus the U.S. greenback, up 9.3 won
from Friday's close, as strong foreign stock buying boosted demand for the won,
dealers said.
Bond prices, which move inversely to yields, closed sharply lower. The return on
three-year Treasuries jumped 0.08 percentage point to 4.18 percent, and the
benchmark yield on five-year government bonds also rose 0.11 percentage point to
4.72 percent.
pbr@yna.co.kr
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