* KOSPI rises 1.54 pct
* Banks, brokerages outperform
* Steel issues up after losses, steel price gains
(Updates to mid-morning)
By Jungyoun Park
SEOUL, June 25 (Reuters) - Seoul shares rose on Thursday in
the wake of positive U.S. economic data, on gains led by
financial issues including KB Financial Group (105560.KS), while
steel issues such as POSCO (005490.KS) also rose on steel price
gains.
The Korea Composite Stock Price Index (KOSPI) was up
1.54 percent at 1386.55 points as of 0214 GMT.
"There was little surprise in both the Federal Open Market
Committee's comments and in its rate hold decision, and it comes
as a relief as it removes uncertainties," said Lee Sun-yeop, a
market analyst at Goodmorning Shinhan Securities.
The U.S. Federal Reserve on Wednesday decided to keep
interest rates near zero percent and said it saw signs that the
deep U.S. recession was easing. [ID:nN24163547]
"The index will likely continue trading at around its 60-day
moving average for sometime. Investors will keep searching for
an upward momentum," said Hwang Keum-dan, a market analyst at
Samsung Securities.
The main KOSPI's 60-day moving average is about 1,370
points.
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]
Banks rose following their latest streak of losses. KB
Financial Group climbed 2.52 percent after news 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 3.9 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 a mere 0.48 percent.
Brokerages also rallied, with HMC Investment Securities
(001500.KS) going up 10.61 percent and Hyundai Securities
(003450.KS) going up 4.26 percent.
"Securities firms saw their earnings rise significantly in
April and May on the back of the stock market rally, and this
has stoked appetite towards the brokerage sector," said Park
Jin-hyung, a market analyst at IBK Securities.
"HMC Investment in particular is rallying on the back of
expectations it may enjoy synergy with Hyundai Automotive Group
eventually," Park added.
Hyundai Motor (005380.KS) controls 27.4 percent of HMC
Investment and Hyundai Mobis (012330.KS) owns 16.46 percent
according to a Korea Exchange filing in February.
Elsewhere steel makers rose after a string of losses, and
due to gains in China's benchmark steel prices.
Prices of China's benchmark hot-rolled coil rose 2.9 percent
to 3,620 yuan ($530) a tonne, versus 3,515 yuan quoted last week
in southern and eastern China, data from Metal Bulletin showed.
Shares in POSCO (005490.KS) was up 2.34 percent and Hyundai
Steel (004020.KS) advanced 1.54 percent.
(Editing by Ken Wills)
