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Seoul shares up 0.5 pct on banks, energy stocks
 
 
 
 
 
 
 Reuters - Thursday, August 20
* KOSPI trades firm as institutions keep buying
ADVERTISEMENT
 
  
* Energy issues rise on gains in crude futures
* Techs trade lower after big rises, outlook still good
By Jungyoun Park
SEOUL, Aug 20 - Seoul shares rose on Thursday with gains fueled by banks, including Shinhan Financial Group <055550.KS>, but losses by shipbuilders and technology companies weighed following their rise in the previous session.
The Korea Composite Stock Price Index <.KS11> was up 0.52 percent at 1,554.03 points as of 0131 GMT.
"A positive finishing in U.S. stocks and expectations that Chinese markets will stabilise are helping domestic market sentiment today," said Kim Joong-won, a market analyst at HMC Investment & Securities.
"But if key technology and auto companies show surer signs that their earnings in the third quarter will continue to come out well, the index will make a more meaningful rebound in the short-to-medium term," Kim added.
Institutions were buyers of a net 45 billion won ($36 million) worth of stocks, while retail investors bought a net 10.4 billion won, picking up shares for a fourth straight session.
Banking issues led gains, with Shinhan Financial Group rising 2.58 percent, while KB Financial Group <105560.KS> rose 2.96 percent a day before it sets the final price for a 1 trillion won rights offering price.
"Sentiment towards banking issues has improved in a broader sense following a prolonged period of difficulties," said Yoon Chang-bae, an analyst at Hyundai Securities.
But technology issues including Samsung Electronics <005930.KS> and Hynix Semiconductor <000660.KS> edged lower after big gains in the previous session.
However, Credit Suisse raised its target price on Samsung Electronics by 16 percent to 860,000 won and lifted its earnings estimate for the world's No.1 memory chipmaker in a note on Thursday.
Samsung Electronics fell 0.95 percent to 731,000 won while Hynix Semiconductor lost 1.26 percent.
A jump in crude futures <CLc1> could boost issues such as SK Energy <096770.KS> and GS Holdings <078930.KS>.
SK Energy rose 1.59 percent and GS Holdings, the holding company of GS Caltex, South Korea's No.2 crude refiner, rose 1.79 percent.
Shares in airlines and tour issues declined amid the latest surge in negative news flows on H1N1 influenza.
Korean Air Line <003490.KS>, South Korea's top air carrier, lost 3.97 percent and Hana Tour <039130.KQ> declined 2.16 percent.
A more than 3 percent fall in the Baltic Dry Index <.BADI>, which tracks the cost of shipping key commodites, pressured shipbuilders, sending Hyundai Heavy Industries <009540.KS> down 1.56 percent and Daewoo Shipbuilding & Marine Engineering <042660.KS> 1.74 percent lower.
 
 
 
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