* Foreign, institutional buying give support
* KAI jumps on debut
* Banks shrug off household debt measures
By Jungyoun Park
SEOUL, June 30 Seoul shares edged up on
Thursday, with sentiment lifted by news the Greek parliament had
approved austerity measures to avoid the country defaulting on
its debts, but gains were limited after sharp rises in the
The Korea Composite Stock Price Index finished up
0.3 percent at 2,100.69 points.
"The Greece news comes as welcome confirmation, though gains
were limited as the market had already risen sharply in the
previous session," said Bae Sung-young, a market analyst at
Greece approved the first of two austerity measures on
Wednesday despite worsening street violence, in a vote vital to
winning fresh international aid so it can pay its debts on time
and stave off bankruptcy.
"Key economic data coming out in early July such as U.S.
manufacturing numbers will be closely followed and will
determine the market's direction," Bae added.
Foreign investors were buyers of a net 180.5 billion won
($168.2 million) worth of stocks, and institutions picked up a
net 150.7 billion won, buying shares for a ninth straight
Brokerages rallied, with Woori Investment & Securities
rising 1.8 percent and Samsung Securities
advancing 3.4 percent.
Falls in refiners weighed, as S-Oil shed 1.8
percent and SK Innovation declined 1 percent.
Korea Aerospace Industries Ltd jumped 43 percent
on its first day of trading. Shares in the aviation equipment
and parts maker ended at 22,150 won compared with the initial
public offering price of 15,500 won.
"KAI has great growth potential as the only aviation
equipment manufacturer in the country," said Shinhan Investment
Corp analyst Hur Min-ho.
"Also, there are expectations of its full privatisation in
the near future, so there is an M&A premium."
Korea Finance Corp, a government financial body, controls
26.4 percent of KAI.
Banking stocks showed a muted reaction to news late on
Wednesday South Korea would require banks to raise risk
weightings in their capital ratios for heavy borrowers as part
of measures to prevent heavy household debts from causing a
fresh financial crisis.
The measures were largely in line with market expectations
and were expected to help bank's financial health in the longer
term, analysts said.
"Most Korean banks have successfully increased loans in
corporate sector driven by strong capex demand. We believe the
impact on bank earnings could be rather mitigated," Bryan Song,
head of research at Bank of America Merrill Lynch in Seoul, said
in a note late on Wednesday.
Hana Financial Group rose 0.54 percent. Woori
Finance Holdings advanced 1.1 percent after South
Korea said it received interest from three local private equity
funds for the government's $6 billion stake in Woori Finance,
raising hopes the troubled auction may go
Daewoo Shipbuilding and Marine Engineering rose
1.1 percent after the company said it had landed an order worth
$400 million to build two LNG carriers from Greece.
KOSPI 200 Sept futures KSc1 ended up 0.85 points at 276.60
points and the KOSPI 200 spot index rose 0.56 points to
275.17. The junior Kosdaq market ended up 0.63 percent
Move on day +0.30 percent
12-month high 2,231.47 27 April 2011
12-month low 1,650.30 6 July 2010
Change on yr +2.42 percent
All-time high 2,231.47 27 April 2011
All-time low 93.10 6 JAN 1981
($1 = 1073.000 Korean Won)
(Editing by Jonathan Hopfner)