Seoul shares rebound: KEB, brokerage stocks rally

* KOSPI up 1.9 pct to close at session high

* KEB posts biggest daily percentage gain in over 5 mths

* Brokerage stocks rally; retailers down (Adds analyst comments, details)

By Kim Yeon-hee

SEOUL, Nov 4 (Reuters) - Seoul shares bounced back on Wednesday, reversing a six-day losing run, with Korea Exchange Bank (KEB) soaring on strong quarterly results and brokerages rallying on hopes the market might have bottomed out.

The gains spread to technology and other sectors towards the close, although analysts said the rebound mostly appeared technical in the absence of fresh leads from economic and corporate fronts.

The Korea Composite Stock Price Index rose 1.94 percent to close at a session high of 1,579.93 points.

The benchmark index had declined 10 percent since touching a 15-month high in late September as of Tuesday, pulling technical indicators near oversold territory.

KEB (004940.KS), the country's sixth-largest bank, leapt 7.81 percent to 13,800 won in heavy trade, scoring its biggest daily percentage gain since late May.

The lender, 51 percent owned by U.S. private equity house Lone Star [LS.UL], posted a forecast-beating quarterly profit on Tuesday after the market close, reviving optimism for the sector. [ID:SEO160935]

Daewoo Securities (006800.KS) also led gainers in active trade, up 7.34 percent, while Samsung Securities (016360.KS), South Korea's most valuable brokerage stock, gained 6.29 percent.

"It is time for brokerage stocks to attract bargain-hunting, based on their low valuations," said Won Sang-phil, a market analyst at Tong Yang Securities. "Stock market transaction volume has been decreasing near a historic low, which signalled the sector approached a trough."

Adding to the brewing optimism, a senior executive of bourse operator Korea Exchange told Reuters it was planning to look at a possible cut in transaction fees charged to brokers to bring down investment costs. [ID:nSEO155742]