Seoul shares up on Samsung Elec, hits a near 1-yr high

* KOSPI firm, up 0.76 pct at new high since August 2008

* Samsung Electronics gains as outlook strengthens

* Brokerages ride higher on stock market rally
(Updates to mid-morning)

By Jungyoun Park

SEOUL, July 31 (Reuters) - Seoul shares rose on Friday led by
key blue chips including Samsung Electronics (005930.KS), while
brokerages such as Daewoo Securities (006800.KS) rallied on
strong stock gains, lending the market further support.

The Korea Composite Stock Price Index .KS11 (KOSPI) was up
0.76 percent at 1,546.39 points as of 0145 GMT, the highest
intraday level since late August 2008.

"Shares are continuing their upward momentum amid an
increasingly bullish third-quarter outlook, following a strong
set of second-quarter numbers. The growing appetite for emerging
market stocks is also helping," said Jun Ji-won, a market analyst
at Kiwoom Securities.

"However we think a technical correction may be ahead,
potentially bringing the main index to the 1,400-point level, as
consumption may not pick up as fast as many hope," Jun said,
adding that the year-end KOSPI target was 1,650 points.

Samsung Electronics (005930.KS) rallied for a second session
amid heavy buying by foreign investors as hopes strengthened that
its third-quarter earnings would surpass the second quarter, in
which it posted its best quarterly profit in 2-½ years.
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"Market participants expect its third quarter earnings to
jump again, prompting foreign investors, who had been rather
conservative with memory chip issues, to grab Samsung Electronics
stocks," said Song Myung-sup, a senior analyst at HI Investment
Securities.

Investment banks Nomura and UBS were the leading buyers of
Samsung Electronics shares as of 0133 GMT.

"There's talk the share price may hit 1 million won ($812.6),
but that seems overly optimistic to me. Our house view is 770,000
won by the end of this year," Song said.

Samsung Electronics were up 1.26 percent at 723,000 won after
rising to 728,000 won, their highest intraday level since early
June 2008.

Brokerage issues also advanced across the board as the latest
stock bull run brightened their earnings outlook on expectations
demand for brokering and financial products would rise.

Samsung Securities (016360.KS) rose 3.54 percent and Daewoo
Securities advanced 3.96 percent.

Energy issues climbed after a 5 percent jump in oil prices
CLc1 overnight, pointing to a pickup in demand for crude
products on the back of improving economic outlook.

GS Holdings (078930.KS), the holding company of South Korea's
second-biggest crude refiner GS Caltex, rose 3.33 percent and SK
Energy (096770.KS), country's largest, gained 1.5 percent.

KB Financial Group (105560.KS), the parent company of South
Korea's largest bank Kookmin, fell 1.65 percent after posting
worse-than-expected second-quarter earnings late on Thursday, due
to extended steep falls in net interest margins (NIM).
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(Editing by Chris Lewis)