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Seoul shares end higher, Samsung Elec rallies
Reuters - 34 minutes ago
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* KOSPI rises on ECB reports, positive U.S. data
* Samsung Group issues rally on management changes
* Hyundai E&C falls after Group submits funding documents
SEOUL, Dec 3 - Seoul shares ended modestly higher on Friday as Samsung Electronics Co Ltd <005930.KS> hit an all-time closing high following Samsung Group's management reshuffle, but Hyundai Engineering & Construction Co Ltd <000720.KS> weighed.
The Korea Composite Stock Price Index <.KS11> finished up 0.36 percent at 1,957.26 points.
"Sentiment is broadly positive on the back of positive U.S. economic data and growing optimism over how U.S. holiday sales will do, which is really boosting technology stocks," said Choi Seong-lak, a market analyst at SK Securities.
Fresh signs the U.S. economy has broken out of its summer soft patch may also lift sentiment further.
Data showed on Thursday a gauge of jobless benefits hit a new two-year low last week and pending home sales unexpectedly rose in October.[ID:nN02209260]
Gains were led by Samsung Group-related shares, with Samsung Electronics ending up 4 percent at its historical closing high of 894,000 won after Jay Y. Lee, son of the group chairman, was named a president. [ID:nSEU003195]
Shares in Hotel Shilla <008770.KS> rose 3.4 percent after the chairman's daughter Lee Boo-jin was promoted as its president and CEO. Shares in Samsung C&T <000830.KS> gained 4.6 percent as Lee Boo-jin was also named as its "adviser" according to the Samsung Group statement.
"There are broader expectations about the new, young generation that will lead the group now. And Ms. Lee, in particular, has a very strong track record of achievement at Hotel Shilla," said an analyst who declined to be named.
"However, Jay Y. Lee has homework to do here. He has not shown much yet," she added.
Technology issues also rode higher, with LG Electronics <066570.KS>, the world's No.3 handset maker, jumping 4.8 percent.
"Its smartphone business had been doing dismally, but they are starting to turn around as its new Optiumus One is doing well," said John Park, an analyst at Daishin Securities.
But shares in Hyundai Engineering & Construction lost ground and fell 2.7 percent after Hyundai Group said it had submitted to Hyundai E&C creditors the documents verifying its funding source and financial ability, amid disputes over it.
Investors favoured Hyundai E&C's merger with Hyundai Motor Group as the automaking group has deeper pockets to finance the deal and to further make investments into the construction firm, according to analysts. There have been concerns Hyundai Group may have to sell the builders' key assets.
Elsewhere, shares in chicken and seafood processors outperformed after South Korea closed all of its livestock markets after an outbreak of foot-and-mouth disease in the southeast of the country on Thursday, prompting consumers to turn to chicken and seafood. [ID:nTOE6B102J]
Shares in Dongwon Fish <030720.KS>, one of the country's biggest seafood processors, rose 0.6 percent. Maniker <027740.KS>, a chicken processor, advanced 1.5 percent.
Trading volume was 426.8 million shares worth 6.6 trillion won, compared with average daily trading volume and turnover of 326.7 million shares worth 6.5 trillion won in October.
The KOSPI 200 Dec futures <KSc1> index rose 1.70 points to 258.10. The KOSPI 200 spot index <.KS200> gained 1.63 points to 257.65.
The junior Kosdaq market <.KQ11> fell 0.75 percent to 502.13.
Move on day +0.36 percent
12-month high 1,976.46 11 NOV 2010
12-month low 1,532.68 25 MAY 2010
Change on yr +16.3 percent
All-time high 2,085.45 1 NOV 2007
All-time low 93.10 6 JAN 1981 (jungyoun.park@thomsonreuters.com; +82 2 3704 5643; Reuters Messaging: jungyoun.park.reuters.com@reuters.net))
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