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

(ATTN: ADDS details on won's price and bond yields in last four paras)
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, marking its sixth consecutive day of gains, excluding Friday.
Demand for the local currency remained strong as overseas investors continued to
buy local shares. Also, emergency credit line deals forged with China and Japan
helped ease concerns about a liquidity shortage in Asia's fourth-largest economy,
dealers said.
The Bank of Korea, the country's central bank, struck currency swap deals with
China and Japan on Friday, worth about $60 billion in an effort to combat a
liquidity shortage. The central bank earlier secured a $30 billion credit line
from the U.S.
Bond prices, which move inversely to yields, closed mixed. The return on
three-year Treasuries rose 0.02 percentage point to 3.97 percent, while the
benchmark yield on five-year government bonds remained steady at 4.35 percent.
pbr@yna.co.kr
(END)