Seoul shares jump on AIG rescue efforts

SEOUL, Sept. 17 (Yonhap) -- South Korean shares climbed sharply late Wednesday morning as investors shored up most large caps following the U.S financial authorities' decision to provide emergency loans to ailing insurance giant American International Group, analysts said.

The benchmark Korea Composite Stock Price Index (KOSPI) advanced 46.68 points, or
3.36 percent, to 1,434.43 as of 11:20 a.m.

"The Federal Reserve's decision to inject much-needed money into AIG
translated into a positive cue for the country's financial sector," said
Kwak Jung-bo, an analyst at Hana Daetoo Securities.

The U.S. Federal Reserve announced on Tuesday it will provide an US$85 billion
emergency loan to AIG, America's largest insurer by asset, which was feared to
collapse over liquidity issues.

Investors seeking bargain deals helped send the key index higher, Kwak noted,
adding that foreign and retail investors turned to net-buying mode after the
KOSPI plunged more than 6 percent on Tuesday.

Most large-cap shares traded sharply higher with market leader Samsung
Electronics advancing 1.52 percent and home appliance giant LG Electronics rising
more than 4.7 percent. LG Display soared nearly 6 percent.

Securities issues also gained substantially following heavy losses on Tuesday.
Mirae Asset & Securities surged 10 percent while Daewoo Securities climbed
more than 6 percent. Other financials also traded higher on relieved U.S.
liquidity concerns.

The local currency was trading at 1,129.9 won to the U.S. dollar as of 11:20
a.m., soaring 30.1 won from Tuesday's close. The won plunged to the lowest level
against the greenback since 2004 on Tuesday.

odissy@yna.co.kr

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