Seoul shares jump 7.5 pct on economic stimulus plans

SEOUL, Dec. 8 (Yonhap) -- South Korean stocks soared 7.48 percent Monday as
investor sentiment was boosted by a set of U.S. economic stimulus plans, analysts
said. The local currency jumped against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) climbed 76.92 points to
1,105.05. Volume was heavy at 533.9 million shares worth 6.44 trillion won
(US$4.44 billion). Gainers outnumbered losers 743 to 112.
"Foreign and institutional buying underpinned the market run. The Seoul bourse
gained ground on a string of U.S. economic stimulus plans and a bailout move for
the auto industry," said Lee Sun-yup, an analyst at Goodmorning Shinhan
Securities Co.
U.S. President-elect Barack Obama vowed on Saturday to make the biggest
infrastructure investment since the 1950s in a bid to bolster the sagging
economy.
Steep gains caused the Korea Exchange, the bourse operator, to suspend program
trading for five minutes in early trading after the main index futures prices
rose more than 5 percent. It was the 24th such emergency break this year.
Most shares traded in positive territory, led by shipbuilders, tech and machinery
shares. Top shipyard Hyundai Heavy Industries jumped the daily limit of 15
percent to 175,500 won and its rival Daewoo Shipbuilding & Marine Engineering
advanced 9.97 percent to 18,200 won.
Market leader Samsung Electronics soared 8.67 percent to 464,000 won and top
power equipment maker Doosan Heavy Industries & Construction rose 14.89 percent
to 65,600 won.
After reversing earlier losses, U.S. stocks closed higher Friday as dismal job
reports raised expectations for the government's aid packages. The Dow Jones
industrial average rose 3.09 percent and the tech-dominated Nasdaq composite
index soared 4.41 percent.
The local currency closed at 1,448.3 won to the dollar, up 27.2 won from Friday's
close, as offshore investors snapped up local stocks, dealers said.
sooyeon@yna.co.kr
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