* KOSPI rises 2.12 pct, fueled by foreign buying
* Key blue chips in techs, commods lead rally
* Banks, brokerages add to upward momentum
(Updates to close)
By Jungyoun Park
SEOUL, June 25 (Reuters) - Seoul shares finished up 2.1
percent on Thursday, led by key commodities and technology blue
chips including Samsung Electronics (005930.KS), and gains in
financial issues including KB Financial Group (105560.KS).
The Korea Composite Stock Price Index (KOSPI)
finished up 2.12 percent or 28.94 points at 1,392.73.
"We are seeing robust foreign buying in both the spot and
futures markets, and this has boosted overall sentiment," said
Ham Sung-sik, a market analyst at Daishin Securities.
Foreign investors were buyers of a net 421.1 billion won
($327.6 million) worth of shares, picking up Seoul stocks after
two consecutive selling sessions.
"Foreign sentiment was helped in turn by positive U.S. data
and stocks on the U.S. S&P and Nasdaq indexes finishing higher,
and also by positive comments from the Organisation for Economic
Cooperation and Development (OECD)," said So Jang-ho, a market
analyst at Samsung Securities.
An unexpected jump in U.S. durable goods orders last month
helped sentiment further, as it supported investor hopes that the
world's largest economy was healing, a prospect cautiously
supported by the Fed on Wednesday. [ID:nN24453754]
The OECD said in its latest economic outlook that the
slowdown in its 30 member countries was close to the bottom, and
said the economic outlook had improved for the first time in two
years. [ID:nLN270829]
Commodities-related issues rose on the back of latest raw
materials price gains.
Korea Zinc (010130.KS), the world's biggest refiner of zinc,
surged 4.91 percent on the latest gains in zinc futures MZN3,
which jumped 6 percent on Thursday.
Steelmakers rose after a string of losses, and because of
gains in China's benchmark steel prices.
China's benchmark hot-rolled coil rose 2.9 percent to 3,620
yuan ($530) per tonne, versus 3,515 yuan quoted last week in
southern and eastern China, data from Metal Bulletin showed.
POSCO (005490.KS), the world's No.4 steelmaker, ended up 2.46
percent, and Hyundai Steel (004020.KS) advanced 1.37 percent.
Banks rose, with KB Financial Group climbing 2.76 percent
after news that it expects to complete a $2 billion rights offer
by early September, giving it the muscle to possibly buy a
commercial bank or non-banking financial services companies.
[ID:nHKG80658]
Hana Financial Group (086790.KS) advanced 4.09 percent, but
Woori Finance Holdings (053000.KS) underperformed after news the
holding company of Woori Bank is in talks with the government,
its majority shareholder, for a possible capital raising
exercise, according to a local media report. [ID:nSEO239885]
Woori Finance Holdings edged up 0.95 percent.
Chemicals maker SKC Ltd (011790.KS) rose on expectations of
solid earnings growth, thanks to rising demand for propylene
oxide (PO) products in China. PO, one of SKC's key products, is a
chemical compound used in a range of industrial and commercial
products, including polyurethane plastics.
"The PO price has spiked this month on the back of solid
demand from China, and SKC, one of the major domestic suppliers
of PO, will be able see steadily robust earnings growth
throughout this year," said Tong Yang Securities analyst Hwang
Kyu-won.
SKC climbed 4.69 percent.
Brokerages also rallied, with HMC Investment Securities
(001500.KS) up 14.94 percent and Hyundai Securities (003450.KS)
up 4.96 percent.
"Securities firms saw their earnings rise significantly in
April and May on the back of the stock market rally, and this has
stoked appetites towards the brokerage sector," said Park
Jin-hyung, as analyst at IBK Securities. He added that HMC
Investment outperformed on the back expectations of synergy with
its major shareholder Hyundai Motor (005380.KS).
($1=1285.4 Won)
