Seoul shares end firm; techs, autos rally

* KOSPI trades firm, up 0.37 percent

* Techs, auto issues rise amid earnings hopes

* Samsung Electronics, LG Electronics hit their 52-week high
(Updates to close)

By Jungyoun Park

SEOUL, July 7 (Reuters) - Seoul shares ended firm on Tuesday
as upward momentum on positive earnings expectations continued,
with robust gains by key tech and auto blue chips, including LG
Electronics (066570.KS) and Hyundai Motor (005380.KS).

The Korea Composite Stock Price Index (KOSPI)
finished up 0.37 percent at 1,434.20 points, merely 1.5 point
away from the year's earlier closing high reached in late May.

"Earnings momentum kicked off by Samsung Electronics'
forecasts are continuing to fuel markets today, lifting shares in
its peers as well," said Lim Nara, a market analyst at Hanwha
Securities.

"However, in order for markets to make a more meaningful
rebound the markets need support from other sectors as well. As
shares have neared their earlier year-highs, they will likely be
rangebound for sometime before the earnings season kicks off,"
Lim added.

Samsung Electronics, the largest counter on the main KOSPI
accounting for about 10 percent of its market cap, climbed 2.52
percent to 650,000 won, hitting a 52-week high.

LG Electronics (066570.KS), the world's No.3 handset maker,
jumped 5.28 percent to 129,500 won, also hitting the highest
level in 52 weeks.

"LG Electronics is also riding on brewing earnings
hopes...investors who missed out on a chance to buy Samsung
Electronics earlier are turning to LG Electronics shares as an
alternative," said Steve Lee, an analyst at Goodmorning Shinhan
Securities.

The world's No.3 handset maker also said on Tuesday it
planned to invest $100 million in Mexico in the next three years
to expand its market presence and workforce there. [ID:nSEO4896]

Automakers also rallied as investors' appetite towards Seoul
key blue chip issues grew, sending shares in Hyundai Motor
(005380.KS) up 3.4 percent and Kia Motors (000270.KS) up 2.96
percent.

"Auto makers' domestic sales have been robust, and this will
accordingly be reflected in their second quarter earnings," said
Lee Sang-hyun, an analyst at Hana Daetoo Securities.

Meanwhile, Korea Exchange Bank (KEB) (004940.KS) rose 1.91
percent after a local media report said South Korea's National
Agricultural Cooperative Federation, known as Nonghyup, was
considering purchasing the lender.

But a spokesman for Nonghyup denied the report as untrue,
saying it lacked the capacity for a bid, and shares gave up
earlier gains of as much as 7.2 percent.

"Nonghyup is said to have a lot of debt and bad assets on its
balance sheet...which is why I think the report is preposterous.
Little synergy is expected between the two, and if Nonghyup does
approach KEB, it would in fact be negative for the bank," said
Hwang Huhn, an analyst at Woori Investment & Securities.

Elsewhere, Cheil Worldwide Inc (030000.KS) jumped 5.26
percent on Tuesday as the Seoul-based advertising agency, a
Samsung Group unit, was expected to post strong earnings for the
April-June quarter.

"After a slow first quarter, Cheil's advertising sales seem
to have turned around in June. The second-quarter operating
profit will almost likely double the first-quarter figure,"
analyst Lee Heuijung at SK Securities said.

"Samsung Electronics has been expanding marketing costs for
its handset and TV products. Such spending will likely continue
for the rest of the year, and Cheil will get a large chunk of
Samsung Electronic's marketing costs," Lee added.