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Seoul shares rangebound, 2011 recovery hopes rise
Reuters - Thursday, December 30
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* LG Electronics gains despite Sony patent complaint
* Auto Car insurers gain on government reforms
SEOUL, Dec 30 - Seoul shares traded in a narrow range on the last trading day of 2010 on Thursday, but hopes for economic recovery remained intact, helping the market hit a series of three-year highs.
The Korea Composite Stock Price Index <.KS11> was up 0.07 recent at 2,044.84 points as of 0253 GMT.
"The global economy is unlikely to post strong growth next year, but the recovery should be better than previously expected," said Tong Yang Securities analyst Kim Joo-hyung. "Liquidity is also expected to improve next year as advanced economies are unlikely to raise interest rates or tighten policy."
With the domestic economy's firm recovery and robust corporate earnings growth, the stock market has climbed more than 20 percent so far this year, more than recovering losses since the financial crisis and posting series of three-year highs in the last two months of the year.
The November 2007 historical high of 2,085.45 points was well within a reach and the KOSPI was set to reach 2,400 points in 2011, according to analysts.
Technology shares were expected to replace auto stocks to lead the KOSPI higher next year, with expectations growing that the struggling tech sector would bottom out, analysts said.
LG Electronics Inc <066570.KS>, the world's No.3 handset maker, gained 3.07 percent on Thursday despite a patent infringement complaint filed by Sony Corp <6758.T> seeking to block LG Electronics from shipping smartphones to the United States.
"The shipment ban is unlikely to happen," said Shinhan Investment analyst Kim Soo-hyun.
The market is focusing on LG's improved smartphone competitiveness, which will help turn around its money-losing handset unit in the second quarter of 2011 at the latest, he said.
"Previously, people thought LG's smartphone business was dead, but it turns out that is not the case. LG has been expanding its smarpthone line-up from low-priced models to high-end ones," Kim said.
Tech bellwether Samsung Electronics Co Ltd <005930.KS> traded in a narrow range after hitting a series of record highs, helped by expectations that it will outperform smaller rivals in the battered chip market.
Auto shares slid, with Hyundai Motor Co <005380.KS>, South Korea's top automaker, dropping 2.55 percent and affiliate Kia Motors Corp <000270.KS> declining 1.36 percent.
Hyundai Elevator Co Ltd <017800.KS> extended its rally, climbing 14 percent on takeover expectations. Schindler Deutschland, in which Schindler Holding AG <SCHN.S> is the major shareholder, said on Monday that it had expanded its stake in the company to 35.27 percent from 33.40 percent. [ID:nTOE6BQ03L]
Auto insurers climbed after the financial regulator unveiled reforms aimed at preventing losses and stabilising insurance charges. [ID:nTOE6BT00O]
Samsung Fire & Marine Insurance Co Ltd <000810.KS> rose 4.4 percent and Hyundai Marine & Fire Insurance Co Ltd <001450.KS> jumped 6 percent.
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