(Updates to mid-morning)
SEOUL, April 23 (Reuters) - Seoul shares traded higher on
Wednesday supported by technology shares such as LG Electronics
(066570.KS) on the weaker won, and with some financial affiliates
of Samsung Group recovering after Tuesday's losses.
LG Electronics (066570.KS), the world's No.5 handset maker,
rose on expectations the weaker won currency will further boost
its highly profitable handset division, lifting the share up 1.72
percent to 147,500 won.
"LG Elec has of late emerged as a potential top-level
competitor in the handset market amid latest lacklustre
performances by its other rivals," said Steve Lee, an analyst at
Goodmorning Shinhan Securities.
He added that the scheduled earnings release by Sony Ericsson
(6758.T) on Wednesday, may further support the view.
The Korea Composite Stock Price Index was up 0.63 percent to
1,798.82 point as of 0141 GMT, recovering from a weaker start.
"The market is fairly steady in the high-1,700s, but it
simply lacks strong catalysts to go above 1,800 and keep it
there," said Kim Joon-kie, a market analyst at SK Securities.
"Positive earnings factors are fading, and investors are
taking a wait-and-see stance before next week's FOMC meeting,"
Kim added.
Hynix Semiconductor (000660.KS), the world's No.2 memory chip
maker, rose 1 percent to 29,800 won on some latest gains in DRAM
contract prices, which rose in 3 percent ranges on Tuesday.
However Samsung Electronics (005930.KS) fell 1.19 percent to
667,000 won after Samsung Group chairman Lee Kun-hee resigned on
Tuesday, raising concerns over management at South Korea's
biggest company, part of the sprawling Samsung conglomerate.
"Some investors are worried about a temporary lack of strong
leadership, and its potential impact on the management amid
intensifying competition in almost every sector of its
businesses," said Lee Jeong, analyst at Hana Daetoo Securities.
However some Samsung Group shares in financial sectors
regained their steep losses from the previous session, as
investors picked up bargain stocks discarded over disappointments
about the extent of structural changes announced on Tuesday.
Samsung Securities (016360.KS), South Korea's leading
brokerage, rose 3.19 percent to 84,200 won, and Samsung Fire and
Marine Insurance Co (000810.KS) gained 3.41 percent to 212,000
won. The heads of both firms stepped down on Tuesday in the wake
of Lee Kun-hee's resignation.
Samsung Securities after Tuesday's close announced a 40
percent rise in quarterly profits, broadly in line with brokers'
expectations.d
Steelmakers also rose across the board after Dongkuk Steel
Mill (001230.KS) raised the prices of steel plates used in
shipbuildig by 23 percent on Tuesday.
POSCO (005490.KS) advanced 2.57 percent to 479,000 won and
Dongkuk Steel went up 4.36 percent to 45,450 won.
(Reporting by Park Jung-youn; Editing by Keiron Henderson)
