* KOSPI ends firm, up 0.61 pct
* Techs, pharmas fuel markets' gain
* Defense issues up on growing N.Korea tension
(Updates to close)
By Jungyoun Park
SEOUL, July 3 (Reuters) - Seoul shares rose on Friday,
rebounding from an early 1.6 percent drop, as gains by some
technology and pharmaceutical issues lent support to the index.
The Korea Composite Stock Price Index (KOSPI)
finished up 0.61 percent at 1,420.04 points.
"It looks like investors were taking the market's earlier
falls to buy into the market more cheaply, and this seems to
indicate that investors here are bullish on listed companies and
their earnings in the longer term," said So Jang-ho, a market
analyst at Samsung Securities.
"Program buying and pension funds' purchase into stocks lent
support to the index," said Ham Sung-sik, a market analyst at
Daishin Securities.
Institutions were buyers of a net 142.3 billion won ($111.9
million), with pension funds picking up a net 60 billion won.
Analysts also said North Korea's firing of short-range
missiles had little impact on Seoul stocks.
Key technology issues including Hynix Semiconductor
(000660.KS) and LG Display (034220.KS) rose amid earnings hopes
for South Korean tech firms.
LG Display, the world's No. 2 maker of liquid crystal display
(LCD), climbed 3.54 percent, amid expectations that the flat
screen maker likely swung back to a profit in the second quarter
on healthy TV demand and a panel price recovery.
"Thanks to steadily robust demand for LCDs, LG Display's
earnings are expected to come out solid in both the second and
third quarters," said Lee Sung-joon, an analyst at SK Securities.
"The rising trend in large LCD panel prices will likely
continue in July as seasonality lifts demand and as supplies of
core parts such as glass remain tight," Goodmorning Shinhan
Securities analyst John Soh said in a research note on Friday.
Hynix Semiconductor gained 2.4 percent after key DRAM memory
chip spot prices advanced in a range of 1 to 2 percent, according
to DRAMeXchange, an electronic parts research firm.
Pharmaceutical firms also rose in anticipation that they will
report strong earnings.
"LG Life Sciences (068870.KS) rallied as their
export-oriented businesses have done quite well in the second
quarter, and Green Cross (006280.KS) as the maker of swine flu
vaccine, is expected to perform well," said Shin Ji-won, an
analyst at Mirae Asset Securities.
LG Life Sciences ended up 4.55 percent and Green Cross jumped
4.59 percent.
Meanwhile Hanwha Chemical (009830.KS) rose 5.5 percent on the
news late on Wednesday that top U.S. chemicals maker Dow Chemical
Co (DOW.N) will shut down several ethylene operations in
Louisiana to cut costs. [ID:nN01496103]
Analysts said Dow Chemical's output cut was expected to boost
global polyvinyl chloride (PVC) prices and help Hanwha's PVC
business. Ethylene is a main feedstock of PVC, widely used for
industrial and commercial purposes.
"It is good news but won't last long because when the price
goes up, Chinese rivals who have been keeping their production
volumes low will want to produce more," said analyst Anthony Kim
at Woori Investment & Securities.
Meanwhile shares in defence issues including Huneed
Technologies (005870.KS) and Victek (065450.KQ) advanced after
the North Korean missile tests.
Huneed, a manufacturer of wireless communications equipment
for military purposes, ended up 1.53 percent and Victek, a maker
of military equipment parts, gained 1.3 percent.
But shares in energy issues sank on the latest weakness in
crude futures CLc1, fuelling worries about crude product demand.
SK Energy (096770.KS), South Korea's top crude refiner, fell
1.54 percent, and GS Holdings, holding company of South Korea's
No. 2 crude refiner GS Caltex, declined 0.17 percent.
