Seoul shares edge up on U.S. stimulus plans

SEOUL, Dec. 9 (Yonhap) -- South Korean stocks closed 0.07 percent higher Tuesday as U.S. economic stimulus plans lifted investor sentiment, outweighing profit-taking, analysts said. The local currency rose against the U.S. dollar.

After volatile trading, the benchmark Korea Composite Stock Price Index (KOSPI)
climbed 0.79 point to 1,105.84. Volume was moderate at 478.6 million shares worth
5.94 trillion won (US$4.09 billion), but losers outnumbered gainers 408 to 403.
"Although the market underwent some volatility, given the previous session's
steep gains, the local bourse maintained solid movement," said Lee Sun-yup, an
analyst at Goodmorning Shinhan Securities Co. "Hopes for saving the ailing U.S.
auto industry and a set of economic stimulus plans helped lift investor
sentiment."
Foreign investors snapped up a net 200.3 billion won worth of local stocks on the
Seoul bourse.
Top carmaker Hyundai Motor advanced 1.29 percent to 43,100 won on rising
expectations of a bailout plan for the teetering U.S. auto industry. But its
affiliate Kia Motors declined 1.84 percent to 6,920 won.
Top steelmaker POSCO gained 3.81 percent to 381,000 won and market leader Samsung
Electronics added 1.19 percent to 469,500 won.
Chip giant Hynix Semiconductor, however, fell 5.26 percent to 7,390 won after
U.S.-based investment fund AllianceBernstein L.P. sold a 4.95 percent stake in
the chipmaker.
U.S. stocks rallied Monday as President-elect Barack Obama's pledge to increase
infrastructure spending lifted market sentiment. The Dow Jones industrial average
rose 3.46 percent and the tech-dominated Nasdaq composite index soared 4.14
percent.
The local currency closed at 1,447 won to the dollar, up 1.3 won from Monday's
close, as offshore investors snapped up local stocks, dealers said.
sooyeon@yna.co.kr
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