KOSPI ends higher; exporters gain on easier oil

By Park Jung-youn

SEOUL, May 30 (Reuters) - Seoul shares ended firm on Friday, with firmer exporters outweighing losses by food and drink makers such as Lotte Chilsung (005300.KS), helped by lower oil and better-than-expected economic data at home and abroad.

Exporters such as LG Electronics (066570.KS) rose after U.S. economic growth data beat market estimates, easing fears of a recession in South Korea's second-largest export market.

And data on Friday showed South Korea's April industrial output rose a seasonally adjusted 1.0 percent in April from March, beating market expectations, while the current account in April showed its biggest surplus in 3 years, offering hope that strong exports are helping to offset record high oil prices.

Exporters responded, with LG Elec up 1.06 percent to 143,000 won and No.2 LCD maker LG Display (034220.KS) up 4.6 percent to 45,500 won. Hyundai Motor (005380.KS) also rose, gaining 0.6 percent to 84,000 won.

The Korea Composite Stock Price Index closed up 0.59 percent at 1,852.02 points, making its gains on the month 1.5 percent, but leaving the index 2.5 percent away from the year's intraday peak of 1,901 points reached May 19.

"A drop in oil prices has lifted market sentiment, but we are seeing the index challenged near 1,850 as there is lack of strong catalysts to lift the index further," said Kim Joon-kie, a market analyst at SK Securities.

"Although export numbers came out relatively strong, I am still worried about domestic consumption, which may cool faster than the market had expected. The market's also got a number of volatility factors, including currency, and even the oil price," Kim added.

DOMESTIC CONSUMPTION

However shares in food and beverage manufacturers such as Lotte Chilsung, South Korea's top soft drinks maker and snacks maker Orion Corp (001800.KS) fell on persistent worries about rising agricultural prices amid current inflationary pressure.

Lotte Chilsung fell 2.8 percent to 1,040,000 won and Orion Corp dropped 2.82 percent to 206,500 won.

Meanwhile brokerages rallied on the back of more merger and acquisition speculation in the sector, after Hyundai Heavy Industries (009540.KS) said it planned to buy two financial units from CJ Group for an undisclosed amount.

Kyobo Securities (030610.KS) rose 7.4 percent to 22,500 won and Meritz Securities (008560.KS) went up 4.67 percent to 8,290 won.

The brokerage sub-index .KS53 rose 1.33 percent.

Transportation shares such as Korea Air Line (003490.KS), which had been battered in recent weeks by high oil prices, got a boost after oil's CLc1 retreat on Thursday to below $127 a barrel.

Korean Air Line advanced 1.35 percent to 52,500 won.