Seoul shares surge on bargain hunting

SEOUL, Oct. 13 (Yonhap) -- South Korean stocks surged more than 3.5 percent Monday as investors picked up recently oversold blue chips on expectations that ongoing global efforts to tackle a financial crisis might help stabilize markets, analysts said.

The benchmark Korea Composite Stock Price Index (KOSPI) jumped 45.09 points, or
3.63 percent, to 1,286.56 in the first 15 minutes of trading. The rebound came
after the index lost 12.55 percent last week.
Steep gains prompted the Korea Exchange (KRX), the bourse operator, to activate
the so-called "sidecar" to suspend trading temporarily to cool the market right
after its opening.
Most large-cap shares gained substantial ground with recently beaten-down
steelmakers and shipbuilders driving up the market. No. 1 steel manufacturer
POSCO rose 4.89 percent, while leading shipyard Hyundai Heavy Industries gained
3.3 percent.
Financial companies added to the upward move. Shinhan Financial Group, the No. 2
financial services company, jumped 5.87 percent and major brokerage such as
Samsung Securities and Mirae Asset & Securities got off to a strong start.
The local currency was trading at 1,246 won to the U.S. dollar as of 9:15 a.m.,
up 63 won from Friday's close.