Seoul shares end up 0.75 pct on rate cut

SEOUL, Dec. 11 (Yonhap) -- South Korean shares closed 0.75 percent higher
Thursday as investor sentiment was boosted by an interest rate cut, analysts
said. The local currency surged against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) climbed 8.56 points to
1,154.43. Volume was heavy at 563.6 million shares worth 7.83 trillion won
(US$5.76 billion), with gainers outpacing losers 551 to 305.
"The central bank's larger-than-expected rate reduction and a local currency gain
helped raise the key index, though in a limited way, as they are expected to
relieve liquidity jitters," said Bae Sung-yung, an analyst at Hyundai Securities.
Earlier in the day, the Bank of Korea slashed the benchmark interest rate by a
record 1 percentage point to 3 percent in a bid to prop up the slowing economy.
Construction shares led the overall gain as lower interest rates are expected to
boost domestic demand. Doosan Construction & Engineering jumped 5.80 percent to
5,110 won and leading builder GS Engineering & Construction added 6.03 percent to
end at 61,500 won.
IT shares gathered ground with Samsung Electronics rising 0.31 percent to 482,500
won and LG Electronics adding 4.69 percent to end at 84,800 won.
Carmakers, however, were dented amid a bleak demand outlook. Top automaker
Hyundai Motor lost 1.59 percent to 46,300 won and its affiliate Kia Motors shed
1.6 percent to end at 7,390 won.
The local currency ended at 1,358.4 won to the dollar, up 35.4 won from
Wednesday's close, as overseas investors purchased the won to pick up local
stocks, dealers said.
pbr@yna.co.kr