Seoul shares end firm fueled by KOGAS, retailers
* KOSPI rises 0.87 percent, snaps losing streak
* Retail issues rally amid holiday sales hopes
* KOGAS jump on Siberian natural gas investment report (Updates to close)
By Jungyoun Park
SEOUL, Sept 29 (Reuters) - Seoul shares ended firm on Tuesday propelled by firm gains in technology and retail issues including Samsung Electronics (005930.KS) and Lotte Shopping (023530.KS), while KOGAS (036460.KS) rallied on natural gas development hopes.
The Korea Composite Stock Price Index (KOSPI) finished up 0.87 percent at 1,690.05 points.
"Shares are taking a breather as the quarterly results season approaches -- third quarter numbers will probably come out fairly strong, but there are concerns about the fourth quarter, as the rate at which economies and corporate earnings pick up is expected to slow a bit," said Won Jong-hyuck, a market analyst at SK Securities.
Won added that he expected the market to trade within a limited range, with the peak likely at about 1,750 points, close to the year's earlier high of 1,723 points.
Retail issues rallied amid expectations about their sales ahead of South Korea's Thanksgiving holiday starting this week.
"Investors seem to be betting on holiday sales gains, although discount retailers are still struggling," said Yu Ju-yeon, adding however that for the remainder of this year they would post firm earnings growth compared with last year's weak numbers.
Lotte Shopping Co Ltd (023530.KS) rose 4.67 percent and Hyundai Department Store (069960.KS) advanced 8.65 percent. Shinsegae Co Ltd (004170.KS) gained 4.8 percent.
Korea Gas Corp (036460.KS) rallied 5.11 percent after a local media report that the world's biggest corporate buyer of liquified natural gas (LNG) was considering investing in a gas field in Siberia.KOGAS declined to comment on the report.
The Maeil Business Newspaper said the Siberian gas field was estimated to hold about 90 percent of Russia's natural gas reserves.
KOGAS also planned to double its capital to 8 trillion won ($6.74 billion) by 2012, and is seeking to issue new shares worth 2 trillion won, according to local media reports after the market close.
Technology also boosted markets, with memory chip makers lifted by gains in key DRAM spot prices and rises in the U.S. semiconductor index .SOXX overnight.
According to chip price tracker DRAMeXchange, key DRAM spot prices rose in a range of 1 to 2 percent overnight.
Samsung Electronics (005930.KS), the world's No.1 memory chip maker, rose 2.01 percent and Hynix (000660.KS), the world's No.2, advanced 2.89 percent.
Banks and brokerages rose following their steep falls in the previous session, and despite news South Korea would lower commission and fee rates that banks, brokerages and insurers charge to sell investment funds. [ID:nSEO255090]
"However we do not expect any meaningful impact from this new regulation in the near term unless it spills over to the existing funds," Merrill Lynch said in a report dated September 28.
Woori Finance Holdings (053000.KS) rose 5.02 percent and Mirae Asset Securities (037620.KS) advanced 1.13 percent.
Korea Exchange Bank (004940.KS) jumped 5.75 percent after the leading creditor of Hyundai Corp (011760.KS) said on Tuesday that Hyundai Heavy Industries (009540.KS) was picked on Tuesday to buy a controlling stake in the South Korean trading firm. ($1=1186.8 Won)
