(Updates to mid-morning)
SEOUL, April 18 (Reuters) - Seoul stocks rose on Friday with
technology shares such as Samsung Electronics (005930.KS)
extending recent gains fuelled by recent earnings from IBM and
the U.S. technology bellwether's bullish 2008 outlook.
Samsung, the world's largest memory chip maker, rose 1.66
percent to 672,000 won and Hynix Semiconductor (000660.KS)
advanced 2.5 percent to 28,750 won, responding anew to IBM's
upbeat business outlook for 2008 which fanned hopes of solid tech
demand in South Korea's second-biggest export market.
"IBM's positive earnings outlook sends encouraging signals
about the broader technology sector, and it has helped boost
appetite for tech shares," said Kim Young-gak, a market analyst
at Hyundai Securities.
The Korea Composite Stock Price Index was up 0.17 percent at
1,771.38 points as of 0129 GMT, gaining for a third straight
session in a run which has lifted the index by 1.7 percent.
SAMSUNG RELIEF
Analysts also said the results of a Samsung corruption probe
on Thursday, in which the Samsung Group Chairman Lee Kun-hee was
indicted on charges of tax evasion and breach of trust, but was
cleared of more serious bribery charges, gave some relief and
lifted shares related to Samsung Group.
"Fortunately for Samsung, Chairman Lee was cleared of bribery
charges, limiting further taint on the Samsung brand," said Lee
Sun-yeob, a market analyst at Goodmorning Shinhan Securities.
"Also there are expectations that some good will come out of
this probe in terms of the management and corporate
transparency," he added.
However financials fell, despite a 4 percent gain by Merrill
Lynch MER.N overnight on expectations the world's largest
brokerage was closer to seeing improvement after it reported
another loss and a more write-downs.
Kookmin Bank 060000.KS fell 2.1 percent to 65,400 won on
concerns about first quarter results, but Samsung Securities
(016360.KS), South Korea's top broker, rose 1.19 percent to
85,300 won amid other brokerages' fall.
Samsung had been undervalued during the Samsung investigation
but the probe's end without the levelling of the more serious
bribery charge has prompted a relief rally, analysts said.
"I personally think Samsung Securities has traded way below
its worth due to several reasons, one of them being the probe,"
said Chung Bo-seung, an analyst at Hanwha Securities.
"It is the most promising brokerage in South Korea, and will
benefit significantly from the impending financial market
deregulation, as an affiliate of Samsung Group," Chung added.
First Fire & Marine Insurance (000610.KS) rose 14.71 percent,
near the daily maxmium of 15 percent for a third day, touching
13,650 won on stake-building by Meritz Fire & Marine Insurance
(000060.KS), which may lead to a bid for First Fire.
(Reporting by Park Jung-youn; Editing by Keiron Henderson)
