ID :
19236
Fri, 09/12/2008 - 19:17
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Shortlink :
http://m.oananews.org//node/19236
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Seoul shares rise more than 2 pct on Wall Street gains
SEOUL, Sept. 12 (Yonhap) -- South Korean stocks advanced 2.4 percent Friday as investor sentiment was lifted by Wall Street gains, following speculation that embattled Lehman Brothers Holdings Inc. is in talks for its possible sale, analysts said. The local currency edged up against the U.S. dollar after volatile trading.
The benchmark Korea Composite Stock Price Index (KOSPI) gained 34.68 points to 1,477.92. Volume was moderate at 305.5 million shares worth 4.68 trillion won (US$4.22 billion), with gainers outpacing losers 670 to 157.
"The key stock index gained ground, helped by market talk about Lehman. Asian markets also rose in the morning session, giving a boost to sentiment," said Park Suk-hyun, an analyst at Eugene Investment & Securities Co.
The Wall Street Journal reported that Lehman Brothers is shopping itself to potential buyers including Bank of America Corp.
U.S. stocks gained Thursday as investor sentiment was boosted by falling oil prices and the report on the Lehman talks. The Dow Jones industrial average gained 1.46 percent and the tech-dominated Nasdaq composite index rose 1.32 percent.
Analysts also said gains in the KOSPI came as uncertainties weighing on the local market this week were dispelled.
"Institutional buying propped up the market with major events like foreign bond maturity and the wrapping up of a key rate decision," said Bae Sung-young, an analyst at Hyundai Securities.
South Korea has been gripped by fears that the country may face a crisis similar to the one it suffered a decade ago, as concerns grew that foreign investors would possibly withdraw their capital from local bond markets en masse this week.
Capital outflight speculation has caused high volatility in the local stock and currency markets since early September, but the feared massive foreign capital exodus has not taken place. Government officials have called the rumors "groundless."
Most shares traded in positive territory, led by exporters and financial shares. Tech bellwether Samsung Electronics rose 1.12 percent to 543,000 won and consumer electronics giant LG Electronics advanced 2.18 percent to 98,400 won after announcing an agreement to set up a joint venture with Germany's Conergy AG to produce solar cells.
Top lender Kookmin Bank added 3.8 percent to 60,100 won and leading steelmaker POSCO jumped 4.56 percent to 435,500 won.
Falling oil prices lifted airline shares, with industry leader Korean Air Lines soaring 5.39 percent to 43,050 won.
After roller-coaster trading, the local currency closed at 1,109.1 won to the dollar, up 0.4 won from Thursday's close, as investors shrugged off the government's decision to delay its planned sovereign debt sale, dealers said.
South Korea said earlier in the day it will postpone the proposed debt sale worth $1 billion in overseas markets, citing renewed financial woes surrounding Lehman Brothers and heightened regional tensions over the health of North Korean leader Kim Jong-il.
Bond prices, which move inversely to yields, rose. The return on three-year Treasuries fell 0.03 percentage point to 5.66 percent and the benchmark yield on five-year government bonds dropped 0.02 percentage point to 5.71 percent.
The benchmark Korea Composite Stock Price Index (KOSPI) gained 34.68 points to 1,477.92. Volume was moderate at 305.5 million shares worth 4.68 trillion won (US$4.22 billion), with gainers outpacing losers 670 to 157.
"The key stock index gained ground, helped by market talk about Lehman. Asian markets also rose in the morning session, giving a boost to sentiment," said Park Suk-hyun, an analyst at Eugene Investment & Securities Co.
The Wall Street Journal reported that Lehman Brothers is shopping itself to potential buyers including Bank of America Corp.
U.S. stocks gained Thursday as investor sentiment was boosted by falling oil prices and the report on the Lehman talks. The Dow Jones industrial average gained 1.46 percent and the tech-dominated Nasdaq composite index rose 1.32 percent.
Analysts also said gains in the KOSPI came as uncertainties weighing on the local market this week were dispelled.
"Institutional buying propped up the market with major events like foreign bond maturity and the wrapping up of a key rate decision," said Bae Sung-young, an analyst at Hyundai Securities.
South Korea has been gripped by fears that the country may face a crisis similar to the one it suffered a decade ago, as concerns grew that foreign investors would possibly withdraw their capital from local bond markets en masse this week.
Capital outflight speculation has caused high volatility in the local stock and currency markets since early September, but the feared massive foreign capital exodus has not taken place. Government officials have called the rumors "groundless."
Most shares traded in positive territory, led by exporters and financial shares. Tech bellwether Samsung Electronics rose 1.12 percent to 543,000 won and consumer electronics giant LG Electronics advanced 2.18 percent to 98,400 won after announcing an agreement to set up a joint venture with Germany's Conergy AG to produce solar cells.
Top lender Kookmin Bank added 3.8 percent to 60,100 won and leading steelmaker POSCO jumped 4.56 percent to 435,500 won.
Falling oil prices lifted airline shares, with industry leader Korean Air Lines soaring 5.39 percent to 43,050 won.
After roller-coaster trading, the local currency closed at 1,109.1 won to the dollar, up 0.4 won from Thursday's close, as investors shrugged off the government's decision to delay its planned sovereign debt sale, dealers said.
South Korea said earlier in the day it will postpone the proposed debt sale worth $1 billion in overseas markets, citing renewed financial woes surrounding Lehman Brothers and heightened regional tensions over the health of North Korean leader Kim Jong-il.
Bond prices, which move inversely to yields, rose. The return on three-year Treasuries fell 0.03 percentage point to 5.66 percent and the benchmark yield on five-year government bonds dropped 0.02 percentage point to 5.71 percent.
