(Updates to mid-morning)
SEOUL, May 15 (Reuters) - Seoul shares hit a 5-½ month high
on Thursday led by Samsung Electronics (005930.KS) a day after a
top management reshuffle sent a signal that the world's biggest
memory chip and LCD screen maker was serious about reform.
South Korea's biggest company has often been criticised for
opaque management but its shares rose 1.6 percent to 750,000 won,
adding to Wednesday's 0.4 percent gain on news CEO Yun Jong-yong
is to be replaced by Lee Yoon-woo, whose previous stint as head
of Samsung's chip unit is seen as a positive for the shares.
Samsung shares were at a fresh record high.
"The management reshuffle came at the right time in the right
manner. Changes are viewed favourably by market participants,"
said Kim Gee-soo an analyst at Goodmorning Shinhan Securities.
"Moreover the earnings outlook for Samsung remains solid as
its handset division will continue to perform well, and a
turnaround in memory chip sector is expected," Kim added.
By 0136 the Korea Composite Stock Price Index was up
1.46 percent at 1,869.65 points, off a session peak above 1,872,
boosted by a rally overnight on Wall Street after a set of solid
corporate results and as a modest rise in U.S. consumer prices in
April cooled inflation worries, lifting exporters.
The index has risen by around 2.5 percent so far this week to
its highest since touching 1,892.50 on January 2 and is on course
for its third consecutive rising session in a week shortened by
Monday's public holiday.
"Although general sentiment remains positive, the index will
hover around the 1,850s as the market lacks new legs to push
substantially above that level," said Yang Kyeung-shik, a senior
market analyst at Hana Daetoo Securities said.
"What the market needs at this point is reassuring
macroeconomic indicators, something related to the inflation,
energy price, and economic growth. But we are not just seeing
them just yet," Yang added.
EXPORTER BOOST
Meanwhile exporter shares such as LG Electronics (066570.KS)
and Hyundai Motor (005380.KS) got a boost after the rise in April
U.S. consumer came out milder-than-expected, raising hopes U.S.
consumer appetite may remain healthy, which bodes well for South
Korean exporters.
LG Electronics jumped nearly 6 percent early on Thursday,
hitting its lifetime high, as a strong earnings outlook coupled
with the won's recent weakness boosted demand for the stock.
By 0121 GMT, LG shares were trading up 4.84 percent at
162,500 won, outperforming the wider market's 1.37
percent gain. The stock had earlier risen as much as 5.81 percent
to hit a record high of 164,000 won.
Steel makers continued their gains on expectations the
earthquake in China will increase demand for steel, amid the
likelihood of a fall in Chinese supplies.
POSCO (005490.KS) rose 1.81 percent to 563,000 won and
Hyundai Steel (004020.KS) gained 2.11 percent to 87,200 won.
Retailers, battered on Wednesday by competition worries after
Britain's Tesco Plc (TSCO.L) said it would buy 36 discount stores
from E-Land for $1.9 billion, saw buyers at the lower levels,
recovering some of the ground they lost in the previous session
Lotte Shopping Co Ltd (023530.KS) rose 1.54 percent to
330,000 won and Shinsegae Co Ltd (004170.KS) went up 1.76 percent
to 578,000 won.
Separately, annual growth in sales at South Korea's top three
department stores slowed slightly in April, government data
showed on Thursday.[ID:nSEO291896]
Meanwhile shares in transportation sector such as Korean Air
Line (003490.KS) advanced 1.37 percent to 51,700 won after U.S.
crude futures CLc1 edged away from record highs near $127 a
barrel to trade under $124.
(Reporting by Park Jung-youn; Editing by Keiron Henderson)
