Seoul stocks close up 0.34 pct on earnings momentum

(ATTN: ADDS bond yields at bottom)
SEOUL, July 22 (Yonhap) -- South Korean stocks edged up 0.34 percent Wednesday as
investors were heartened by strong U.S. and local earnings, analysts said. The
local currency inched higher against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) gained 5.05 points to
1,494.04, marking a seven-session gaining streak. Volume was moderate at 498.9
million shares worth 6 trillion won (US$4.8 billion), with winners outnumbering
losers 450 to 336.
"Investors were encouraged by a string of stronger-than-expected earnings reports
in the U.S., but the gains were limited as investors took profits," said Kim
Young-joon, an analyst at SK Securities. "The ongoing local earnings momentum is
likely to further boost shares down the road."
Steelmakers led the gains, bolstered by rising steel output and prices. Top steel
producer POSCO jumped 2.61 percent to 471,000 won and smaller rival Dongkuk Steel
Mill advanced 2.03 percent to 30,100 won.
Shipyards also surged with top global shipyard Hyundai Heavy Industries surging
3.69 percent to 211,000 won on bargain-hunting.
Large-cap electronic shares, however, lost ground as investors booked profits
from their recent gains fueled by hopes of strong second-quarter earnings.
Biggest memory-chip maker Samsung Electronics fell 0.58 percent to 688,000 won
and smaller tech giant LG Electronics dropped 1.13 percent to 131,500 won though
it reported its second-quarter earnings surged 62 percent on-year to 1.15
trillion won.
The South Korean won ended at 1,248.0 won to the U.S. dollar, up 0.5 won from
Tuesday's close, as solid foreign stock buying boosted demand for the won,
dealers said.
Bond prices, which move inversely to yields, closed lower. The return on
three-year Treasuries rose 0.05 percentage point to 4.21 percent, and the
benchmark yield on five-year government bonds also climbed 0.06 percentage point
to 4.75 percent.
pbr@yna.co.kr
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