Seoul stocks jump almost 5 pct on U.S. rally

SEOUL, Dec. 15 (Yonhap) -- South Korean stocks spiked 4.93 percent Monday as foreign and institutional investors picked up big-cap shares following Wall Street gains, analysts said. The local currency rose against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) climbed 54.37 points to
1,158.19. Volume was heavy at 478.33 million shares worth 5.72 trillion won
(US$4.18 billion), with gainers outpacing losers 817 to 109.
"Foreign and institutional investors scooped up local shares after Wall Street
took a boost on Friday from renewed hopes that a lifeline will be extended to
cash-strapped automakers," said Kwak Jung-bo, an analyst at Hana Daetoo
Securities.
Steep gains prompted the Korea Exchange, the bourse operator, to suspend program
trading for five minutes in early trading after the KOSPI futures prices rose
more than 5 percent.
Wall Street rallied Friday as the White House and the Treasury Department
reassured stock investors they are ready to assist the beleaguered auto sector a
day after the U.S. Senate voted to reject a US$14 billion aid bill.
The Dow Jones industrial average rose 0.75 percent and the tech-laced Nasdaq
composite index jumped 2.18 percent.
Builders spearheaded the overall rally as investors bet the local government will
place big orders to bolster the slowing local economy. Top builder Daewoo
Engineering & Construction surged 14.51 percent to 10,100 won and Hyundai
Engineering & Construction jumped 14.95 percent to 61,500 won.
Auto shares also joined the market-wide rally. Hyundai Motor, the country's
leading automaker, gained 7.14 percent to close at 45,000 won, and its affiliate
Kia Motors Corp., added 7.29 percent to end at 7,210 won.
Shipbuilders and steel makers also added substantial ground. Hyundai Heavy
Industries climbed 10 percent to 220,000 won and POSCO added 4.13 percent to
390,500 won.
Securities stocks were also boosted in anticipation of year-end stock rally.
Mirae Asset jumped 6.47 percent to 79,000 won with Daewoo Securities rising 14.06
percent to 14,600 won.
The local currency ended at 1,367 won to the dollar, up 5.5 won from Friday's
close, as offshore investors snapped up won to purchase local shares, dealers
said.
pbr@yna.co.kr
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