(LEAD) Seoul shares jump 2.84 pct on foreign buying

(ATTN: RECASTS lead; CHANGES timeline in para 2; ADDS bond yields at bottom)
SEOUL, Jan. 7 (Yonhap) -- South Korean stocks closed 2.84 percent higher
Wednesday as foreign investors snapped up electronics and other large-cap shares,
analysts said. The local currency jumped against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) surged 33.89 points to a
12-week high of 1,228.17, gaining for a fifth session. Volume was heavy at 561.81
million shares worth 7.55 trillion won (US$5.84 billion), with winners outpacing
losers 594 to 244.
"Foreign buying was extensive as local and overseas stimulus policies spurred
optimism on the market," said Bae Sung-yong, an analyst at Hyundai Securities.
Foreign investors purchased a net 562 billion won, extending their net buying to
a sixth session.
Builders were the biggest gainer after the government unveiled on Tuesday a 50
trillion won construction measure to spur employment. Top builder Daewoo
Engineering & Construction advanced by the daily limit of 14.58 percent to 11,000
won with Samsung C&T climbing 6.57 percent to 45,400 won.
Chipmakers finished sharply higher as investors expected a rebound in prices.
Memory-chip giant Samsung Electronics jumped 5.22 percent to 524,000 won,
recovering to a two-month high.
Shipbuilders also jumped on a market report their fourth-quarter earnings may be
higher than expected. Hyundai Heavy Industries gained 5.68 percent to 232,500 won
with Daewoo Shipbuilding and Marine Engineering increasing 7.71 percent to 21,650
won.
The local currency finished at 1,292.5 won to the dollar, up 20 won from
Tuesday's close, as foreign investors purchased the won to buy local stocks.
Bond prices, which move inversely to yields, closed lower. The return on
three-year Treasuries added 0.11 percentage point to 3.45 percent and the
benchmark yield on five-year government bonds rose 0.17 percentage point to 3.92
percent.
pbr@yna.co.kr
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