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Seoul shares hit new 27-mth closing high on autos
Reuters - 1 hour 8 minutes ago
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* KOSPI hits fresh 27-mth closing high amid foreign buying
* Gains led by auto stocks, shipbuilders
* Hyundai Homeshopping rallies on first trading day
By Jungyoun Park
SEOUL, Sept 13 - South Korean shares rose to a fresh 27-month closing high on Monday, led by autos and shipbuilders such as Hyundai Motor <005380.KS> and Samsung Heavy <010140.KS> on more positive global investor confidence.
The Korea Composite Stock Price Index <.KS11> finished up 0.9 percent at 1,818.86 points, the highest close since June, 2008.
"Improving market and economic sentiment in the U.S. following key data, and easing financial fears in Europe have boosted foreign buying sentiment in Seoul market," said Lee Sun-yeb, a market analyst at Shinhan Investment Corporation.
Chinese factories increased production in August, according to data on Saturday, showing that the economy remained buoyant despite government efforts to clamp down on bank lending and property speculation.
Data on Friday showed U.S. wholesale inventories surged the most in two years in July, adding to signs that economic growth in the third quarter of the year may prove a bit stronger than many forecasters had expected. [ID:nN09174403]
Foreign investors were buyers of a net 439.4 billion won worth of South Korean stocks, picking up shares for a second session.
Shipbuilders rallied, boosted by renewed strength in the Baltic Dry Index <.BADI>, which tracks the cost of shipping key commodities.
"Earlier liquidity concerns about shipbuilders have eased significantly as we see steady flow of news orders," said Sung Ki-jong, an analyst at Daewoo Securities.
Shares in STX Offshore & Shipbuilding <067250.KS> jumped 14.9 percent, further boosted by news the shipbuilder had won an order worth 313.9 billion won to build six tankers. [ID:nSEU003127]
Shares in Hyundai Heavy Industries <009540.KS>, the world's No.1 shipbuilder, ended up 6 percent and Samsung Heavy Industries <010140.KS> rose 3 percent.
Auto stocks also advanced as Japanese yen's continued strength pointed to relative pricing competitiveness of South Korean cars, analysts said.
Shares in Hyundai Motor <005380.KS> rose 4.7 percent and Kia Motors <000270.KS> went up 3.7 percent.
Elsewhere, shares in Hyundai Homeshopping <057050.KS> rallied on its first trading day, rising more than 48 percent above its initial public offering price.
"Hyundai Homeshopping has ample cash reserves and it has plans for sensible investments. The company focuses on what it does the best -- the retail business," said Kim Kyeong-ki, an analyst at Hanwha Securities.
"Within the domestic home shopping market, Hyundai Homeshopping is on its way to surpass its rival CJ O Shopping <035760.KQ>, since it is backed by its Hyundai Department Store parent," Kim added.
Hyundai Department Store <069960.KS> is the firm's majority shareholder.
Shares in Hyundai Homeshopping ended the trade at 130,500 won, up 45 percent from an initial public offering price of 90,000 won.
Elsewhere, banks' reaction to the Basel III agreement on new capital rules was muted.[ID:nSGE68904W]
"South Korean banks fulfill much of the key agreed requirements already," said Kim In, an analyst at Eugene Investment & Securities.
Shares in KB Financial Group <105560.KS> rose 0.6 percent and Hana Financial Group <086790.KS> ended flat.
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