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Seoul shares end at fresh closing high
Reuters - 1 hour 5 minutes ago
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* KOSPI extends gains to approach all-time high
* Shipyards, POSCO contribute to market gains
SEOUL, Jan 4 - Seoul shares posted a new closing high on Tuesday, buoyed by continued foreign buying and firm gains in shipyards such as Daewoo Shipbuilding & Marine Engineering <042660.KS>.
The Korea Composite Stock Price Index <.KS11> ended up 0.73 percent at 2,085.14 points, mere points away from the index's all-time high of 2,085.45 points.
"Upside momentum is fuelled in particular by foreign buying, on positive expectations about both domestic and global economies," said Lee Jin-woo, a market analyst at Mirae Asset Securities, adding that firm U.S. data was an added help.
U.S. manufacturing grew at its fastest pace in seven months in December, extending a recent run of encouraging economic data and suggesting that expansion of the world's largest economy will accelerate in 2011.[ID:nN03175600].
Foreign investors were buyers of a net 507.8 billion won worth of stocks, picking up shares for a second consecutive session.
But the index undoubtedly faces some sell-off risks at the current level, said Shinhan Investment Corp market analyst Lee Sun-yeb.
The main KOSPI's 20-day relative strength index reads 80.7, substantially above the overbought territory mark of 70 and indicating profit-taking moves may be ahead.
Firm gains in shipyards added to upside momentum. Hyundai Heavy Industries Co Ltd <009540.KS>, the world's No.1 shipbuilder, rose 3.8 percent. Daewoo Shipbuilding & Marine Engineering Co Ltd <042660.KS> gained 2.5 percent.
"We are seeing a steady inflow of ship orders. The sectoral outlook this year is expected to improve from the year before," said Daewoo Securities analyst Sung Ki-young.
Doosan Engine Co Ltd <082740.KS>, which made its market debut on Monday, ended the session at 25,700 won, up 33 percent from its IPO price of 19,300 won.
Shares in Hyundai Engineering & Construction <000720.KS> rose 3.5 percent ahead of the South Korean court's ruling on Hyundai Group's request to ban Hyundai E&C shareholders from cancelling the takeover agreement.
Shares in Hyundai Merchant Marine <011200.KS>, a key unit of Hyundai Group, gained 2.4 percent. Shares in Hyuhdai Motor <005380.KS> underperformed, edging up 0.6 percent.
POSCO <005490.KS> rose 2.8 percent after news that an Indian government panel had approved a long-delayed steel mill project.
The panel said on Monday that there were no ecological concerns over the $12 billion steel mill, adding that its recommendation was for an initial annual capacity of 4 million tonnes and that other studies were needed before approving expansion to 12 mpta. [ID:nSGE70209M]
"There remain issues regarding the project, but the biggest hurdle has been cleared," said Shinhan Investment analyst Park Byeung-chil. "The Indian project has been at the forefront of POSCO's overseas expansion as it is facing intensifying competition at home and abroad."
Airlines and tour issues outperformed, lifted by persistent strength in the won <KRW=>, which hit a seven-week high.
Both Korean Air Lines Co Ltd <003490.KS> and Asiana Airlines Inc <020560.KS> gained 2.8 percent. Modetour Network Inc <080160.KQ>, an on-and-offline tour agency, advanced 1.5 percent.
Brokerages underperformed following recent gains.
Woori Investment & Securities Co Ltd <005940.KS> shed 1.3 percent and Mirae Asset Securities <037620.KS> lost 0.8 percent.
The KOSPI 200 March futures <KSc1> index rose 1.45 points to 276.70. The KOSPI 200 spot index <.KS200> went up 1.97 points to 275.78.
The junior Kosdaq market <.KQ11> gained 0.64 percent to 521.35.
Move on day +0.73 percent
12-month high 2,085.14 4 Jan 2011
12-month low 1,532.68 25 MAY 2010
Change on yr +1.66 percent
All-time high 2,085.45 1 NOV 2007
All-time low 93.10 6 JAN 1981
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