Seoul shares end 0.95 pct higher on bargain hunting

(ATTN: ADDS bond yields at bottom)
SEOUL, Jan. 13 (Yonhap) -- South Korean stocks closed 0.95 percent higher Tuesday
as foreign and retail investors hunted for bargains following recent losses,
analysts said. The local currency rose against the U.S. dollar.

After trading in a narrow range, the benchmark Korea Composite Stock Price Index
(KOSPI) advanced 10.96 points to 1,167.71. Volume was moderate at 374.8 million
shares worth 4.03 trillion won (US$2.99 billion), with gainers outpacing losers
410 to 404.
"After foreign investors swung to net buyers of local stocks, the foreign
exchange market stabilized and accordingly, the KOSPI reversed earlier falls,"
said Kwak Joong-bo, an analyst at Hana Daetoo Securities Co.
"Worries over the deepening economic slowdown and dimmer earnings reports seems
to have already been factored into the market."
The KOSPI got off to a weak start mirroring overnight falls in U.S. markets, but
it reversed earlier losses after foreign investors turned net buyers of local
stocks in the morning session. Offshore investors snapped up a net 35 billion won
worth of Seoul stocks, ending a selling spree for the third straight sessions.
South Korea's listed companies are set to announce their fourth-quarter earnings
starting Thursday, led by top steelmaker POSCO.
Chip giant Hynix Semiconductor rose 2.17 percent to 7,070 won after creditors of
the chipmaker have agreed to complete the sale of the world's second-largest chip
maker by September.
Automakers also gained ground. Top carmaker Hyundai Motor advanced 1.88 percent
to 46,000 won and its affiliate Kia Motors jumped 5.49 percent to 7,500 won.
Shares of Eugene Investment & Securities advanced 5.61 percent to 1,130 won as
the recent deal breakup to sell the securities firm to a private equity fund
raised hopes for finding another buyer.
But top steelmaker POSCO fell 1.57 percent to 377,000 won on concerns that global
steel demand would not recover any time soon.
The local currency ended at 1,354 won to the dollar, up 5 won from Monday's
close, as offshore investors picked up local stocks, dealers said.
Bond prices, which move inversely to yields, closed higher. The return on
three-year Treasuries shed 0.03 percentage point to 3.5 percent and the benchmark
yield on five-year government bonds also fell 0.03 percentage point to 4.04
percent.
sooyeon@yna.co.kr
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