SEOUL (Thomson Financial) - South Korean shares were higher in early trading
Monday, extending gains for a fifth day, as
investors sought out bargains in the financial sector as well as among
shipbuilders and steelmakers.
"The rebound is continuing, albeit at a slower pace, suggesting that
sentiment is stabilizing as
worries about the US financial system have eased," said Lee Kyung-Soo, an
analyst at Daewoo Securities.
Last week major US investment banks reported financial results some of which
were ahead of
Wall Street's expectations. The Federal Reserve also slashed its benchmark rate
by another 75 basis points last week.
Lee said shares of shipbuilders, steelmakers, airliners and those in the
chemical and food sectors appear to be attractive given the recent decline in
prices of raw materials including oil which bodes well for businesses in those
industries.
At 9.52 am (0052 GMT), the KOSPI index was up 9.30 points or 0.6 percent at
1,654.99.
Gains were capped as investors found few trading leads with Wall Street
closed for Good Friday and ahead of the release of economic data both at home
and abroad this week.
Due from the US are data on housing, consumer confidence and orders of
durable goods which investors hope would show the effect of the Fed's interest
rate cuts since September.
In Seoul, the government will release the current account data on Friday.
There is worry that the current account may be in deficit for a third straight
month which will be bad news for the South Korean won which has fallen recently
against the dollar.
In January, the current account was in deficit by 2.6 billion dollars, the
biggest in more than a decade, due to soaring oil prices.
Volume traded reached 74 million shares worth 829 billion won.
Advancers outnumbered decliners 395 to 277.
Shinhan Financial jumped 1,200 won or 2.4 percent to 50,800 won and Kookmin
Bank advanced 1,100 won or 2 percent to 55,000 won. Woori Financial surged 650
won or 4 percent to 16,750 won.
Hyundai Heavy rallied 10,000 won or 2.8 percent to 363,000 won and Daewoo
Shipbuilding soared 1,150 won or 3.5 percent to 33,750 won.
POSCO gained 3,000 won or 0.7 percent to 461,000 won.
(1 US dollar = 1,001 won)
eunkyung.seo@thomson.com
es/ms/es/ms/es/ms
COPYRIGHT
Copyright Thomson Financial News Limited 2008. All rights reserved.
The copying, republication or redistribution of Thomson Financial News Content,
including by framing or similar means, is expressly prohibited without the prior
written consent of Thomson Financial News.
|