Seoul stocks end 0.4 pct higher on foreign buying

(ATTN: ADDS bond yields at bottom)
SEOUL, July 23 (Yonhap) -- South Korean stocks finished 0.16 percent higher
Thursday on sustained foreign buying, analysts said. The local currency fell
against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) climbed 2.45 points to
1,496.49, marking an eight-day winning streak. Volume was heavy at 634 million
shares worth 6.5 trillion won (US$5.2 billion), with winners outnumbering losers
434 to 359.
"Shares ended slightly higher as foreigners, buoyed by earnings momentum,
remained in a buying mode," said Lee Jae-man, an analyst at Tong Yang Securities.
Financial shares led the gain as investors felt the National Assembly's passage
of a bill permitting industrial conglomerates' greater ownership in local banks
could spur mergers and acquisitions in the sector.
State-run lender Industrial Bank of Korea spiked 8 percent to 13,500 won and
Korea Exchange Bank advanced 2.36 percent to 10,850 won. Woori Finance Holdings,
the holding company for second-largest lender Woori Bank, finished 3.63 percent
higher to 12,850 won.
Blue-chip tech and auto shares, however, lost ground on profit-taking.
"Investors locked in profits after IT and auto companies rose on strong
second-quarter earnings," said Seo Dong-pil, an analyst at Hana Daetoo
Securities.
Top car-maker Hyundai Motor declined 2.97 percent to 81,700 won even after
reporting stronger-than-expected second-quarter results. Its affiliate Kia Motors
plunged 4.18 percent to end at 14,900 won. Consumer electronics giant LG
Electronics slid 3.42 percent to 127,000 won.
State power company KEPCO surged 3.86 percent to 32,300 won and SK Telecom gained
2.49 percent to 185,500 won as investors hunted for bargains.
The local currency ended at 1,248.7 won versus the dollar, down 0.7 won from
Wednesday's close, as importers bought the greenback to settle bills, dealers
said.
Bond prices, which move inversely to yields, closed higher. The return on
three-year Treasuries fell 0.05 percentage point to 4.16 percent, and the
benchmark yield on five-year government bonds also dropped 0.04 percentage point
to 4.71 percent.
pbr@yna.co.kr
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