* KOSPI ends firm
* Insurers gain on rosy sector outlook
* Stronger won weighs on exporters
(Updates to close)
By Jungyoun Park
SEOUL, May 8 (Reuters) - Seoul shares ended firmer after a
volatile session that saw the main index move in and out of
positive territory on Friday, before the release of U.S. jobs
data keeping investors in check, but insurers rose.
The Korea Composite Stock Price Index (KOSPI)
finished up 0.79 percent at 1,412.13 points.
"Programme buying lifted the main index out of negative
territory in the afternoon session, but frankly, the markets
still lack strong catalysts to comfortably settle at 1,400
points," said Won Jong-hyuck, a market analyst at SK Securities.
"Seoul market participants will keenly follow U.S. market
reactions to the jobs data that is due out later tonight," Won
said.
The number of jobs U.S. non-farm payrolls shed last month
will enter the spotlight on Friday as investors try to gauge
whether the end of a deep recession is in sight. [ID:nN07574846]
"The main index has gained significantly from the 12-month
low near 900. We have set the first-half target at 1,450 on the
back of the latest upward momentum, but unless we see significant
improvements in fundamentals, the index will not likely rise
above that level," said Y.S. Rhoo, a market analyst at Hyundai
Securities.
The KOSPI was in overbought territory according to its 20-day
relative strength index.
Insurers outperformed the broader market on a rosy sectoral
market outlook, analysts said.
"Recent data from insurers showed that new contracts for
long-term policies increased quite significantly in April, and
this boosted sentiment towards insurers," said Park Sun-ho, an
analyst at Goodmorning Shinhan Securities.
"Yes, we saw substantial growth in long-term policy contracts
last month, thanks mainly to a strong performance by our general
agencies," said a spokeswoman at Hyundai Marine & Fire
(001450.KS).
Samsung Fire & Marine Insurance Co Ltd (000810.KS) rose 5.71
percent, while Hyundai Marine & Fire advanced 4.05 percent.
Samsung Fire on Friday forecast 3.6 percent growth in its net
profit to 620 billion won ($491 million) in the fiscal year
ending next March from the previous year. [ID:nSEL000604]
Meanwhile, shares in Hyundai Engineering & Construction
(000720.KS) jumped 6.31 percent after news that seven South
Korean banks sold a stake in the company in a block deal at the
high end of their offered range. [ID:nSEO344279]
"Hyundai Engineering shares are flying since this block deal
resolves overhang issues," said Cho Joo-hyung, an analyst at Hana
Daetoo Securities.
"The smaller remaining stake makes it easier for the banks to
find a strategic investor by making the stake purchase less
overwhelming," Cho said.
But a stronger won KRW= continued to weigh on some
exporting issues on concerns it may dent the price
competitiveness of South Korean goods.
Hyundai Motor (005380.KS), South Korea's top carmaker, ended
down 1.65 percent, and Hynix Semiconductor (000660.KS), the
world's No.2 memory chipmaker, retreated 1.07 percent.
