* KOSPI rises 1.81 pct
* U.S. bank forecast, S.Korean GDP estimates help
* POSCO slightly outperforms before earnings
(Updates to mid-morning)
By Jungyoun Park
SEOUL, April 10 (Reuters) - Seoul shares rose on Friday after
solid gains on Wall Street, with a positive growth estimate for
the first quarter from South Korea's central bank also boosting
sentiment and sending banks higher.
The Korea Composite Stock Price Index (KOSPI) was up
1.81 percent at 1,340.23 points, its highest intraday level since
October 15.
Shares were up for a second consecutive session and headed
towards their fifth consecutive week of gains, the longest weekly
gaining streak since June 2007.
"The market was helped by Wells Fargo's
stronger-than-expected first quarter results estimate, fueling
hopes of stabilisation in U.S. financial markets," said Won
Jong-hyuck, a market analyst at SK Securities.
Wells Fargo said on Thursday it expected to post a record $3
billion first-quarter profit, causing its shares to soar 31.7
percent. [ID:nN09260398]
"South Korea's GDP estimates from the central bank also
helped, though there was no jubilation over them," Won added.
The Bank of Korea on Friday estimated the country's gross
domestic product for the first quarter expanded a seasonally
adjusted 0.2 percent from the previous quarter, when GDP fell 5.1
percent. [ID:nSEV000677]
But the KOSPI cut some of its near-3 percent gains to the
session high of 1,355.69 points.
"The market has lost some steam after its latest set of steep
gains, but continues to have upward momentum. Institutions are
booking profits as some uncertainties lie with the long weekend
in the United States," said Lee Sun-yeob, a market analyst at
Goodmorning Shinhan Securities.
"If U.S. banks show some signs of improvements and
stabilisation, the index could make a more meaningful rebound.
Better numbers from banks will point to stronger economies in the
second half," Lee added.
Banking issues rose after the S&P financial index .GSPF
shot up 15.51 percent. Hana Financial Group (086790.KS) rose 5.65
percent and Woori Finance Holdings (053000.KS) jumped 10.09
percent.
Elsewhere POSCO (005490.KS) slightly outperformed the
benchmark index, adding 1.87 percent, despite comments by the
company on Thursday that its first quarter operating profit would
be slightly lower than analysts' average forecast compiled by a
domestic research firm. POSCO is due to release quarterly results
on Friday. [ID:nSEO335185]
"Weakness in POSCO's first quarter figures has largely been
expected," said Kim Hyun-tae, a market analyst at Hyundai
Securities.
"The focus now will be on future quarters, and when and by
how much POSCO will cut key steel prices as the industry
continues to face difficulty," Kim added.
Asiana Airlines (020560.KS) lagged, falling 0.24 percent,
after news South Korea's No.2 air carrier had agreed to pay $50
million in criminal fines related to charges it had conspired to
fix prices with two other airlines. [ID:nN09287060]
(Editing by Jonathan Hopfner)
