Seoul shares post 15 pct gain on the quarter

* KOSPI rises 0.12 pct, positive domestic data helps

* KOSPI posts 15 pct gain on Q2 on econ hopes

* Analysts say the main index could reach 1,500-600 range

(Updates close)

By Jungyoun Park

SEOUL, June 30 (Reuters) - Seoul shares ended higher on
Tuesday with a set of domestic data lifting sentiment, and
helping the main index register a 15 percent gain so far on the
second quarter on last trading day of June.

The Korea Composite Stock Price Index (KOSPI)
finished up 0.12 percent at 1,390.07 points. The main KOSPI has
risen 15.2 percent since late March as shares rode higher on
hopes for stabilisation in economies and global financial
markets.

"Stocks gained a lot in April, but movements since then have
been pretty dull and flat as investors grew concerned over
whether shares had rallied prematurely before more certain
indications of economic improvement," said Yun Lee, a senior
market analyst at Woori Investment & Securities.

Lee added that he expected the index to reach a range of
1,500-1,600, nearer the "pre-Lehman collapse" level.

Korea Exchange data showed that the main KOSPI was trading at
a price-to- earnings ratio (PER) of 18.37, up significantly from
13.31 a year ago.

The main index's price-to-book value ratio was 1.10, down
from 1.4 in late June, 2008.

"As markets grow more convinced that economies are on track
for recovery, shares will likely rebound to levels seen before
the financial crisis last year," Lee said, adding that changes in
corporate earnings would likewise be reflected in the valuation.

Foreign investors were buyers of a net 4.6 billion won ($3.60
million), picking up Seoul stocks for a fourth consecutive
session.

Sentiment was also helped by a batch of data showing that
Asia's fourth-largest economy was stabilising.

South Korean manufacturers' assessment of the business
outlook for July rose for a fourth straight month to a 13-month
high, data showed on Tuesday, indicating the economy was
approaching a turnaround. [ID:nSEO303763]

South Korea's industrial output rose a seasonally adjusted
1.6 percent in May from April, data showed on Tuesday, marking
the fifth consecutive month of gains, and stoking economic
recovery hopes. [ID:nSEV000740]

Markets were fueled by banks, with KB Financial Group
(105560.KS) finishing up 1.3 percent, and Hana Financial Group
(086790.KS) surging 1.86 percent.

"Banking issues are riding on window-dressing effects as
institutions are moving in to snap up key sectoral shares,
including financials, as the end of first half is imminent," said
Yoon Chang-bae, an analyst at Hyundai Securities. "Some investors
are also betting on improvements in their performances by the
third quarter."

But vehicle issues declined on labour strike concerns.

Kia Motors Corp (000270.KS), South Korea's second-biggest
carmaker, fell 3.82 percent as the company's labour union
approved a plan for partial strikes after wage talks stalled.

In a statement, Kia's union said 66 percent of its 30,300
members had voted in favour of the protest plan. Union members
are set to stage two-hour strikes per shift starting on Tuesday,
according to Yonhap News.

Ssangyong Motor Co (003620.KS) tumbled 15 percent as a
unionised workers' strike that started on May 21 continued.

The newspaper Hankyoreh on Monday said the South Korean
carmaker could face bankruptcy even before submitting its
business normalisation plan to the court, quoting the
court-appointed administrators.

"Ssangyong Motor's estimated value on the recovery has been
lowered as its operation has slowed down," said Lee Sang-hyun, an
analyst at Hana Daetoo Securities.

"Government rescue measures will be the only hope since
management-worker talks are heading toward collapse," Lee added.

Taihan Electric Wire (001440.KS) jumped more than 7 percent
after a report said Italian cable maker Prysmian (PRY.MI) was in
talks to take over Draka Holding NV (DRAK.AS), Europe's
third-largest cable maker based in the Netherlands.
[ID:nLT606499]

Taihan Elec Wire's investment arm, Taihan Global Luxembourg
Investment Sarl, controls 9.9 percent of Prysmian.

"There are hopes that Taihan would benefit from Prysmian's
business," said Kim Ji-san, an analyst at Kiwoon Securities.