* Foreign net buying amount biggest in nearly 3 months
* KEPCO shares tumble, Samsung SDI jumps on nuclear reactor
* Builders, exporters gain firmly
SEOUL, May 29 South Korean shares closed at a
two-month high on Wednesday as risk appetite improved, with
foreign investors and pension funds piling into tech and auto
stocks following a global rally overnight.
Sentiment was further boosted by a government announcement
that the national pension service, the world's fourth-largest,
plans to boost the weighting of stocks and alternative assets in
the total while cutting that of bonds.
The Korea Composite Stock Price Index finished up
0.75 percent at 2,001.20 points, the highest close since
"Strength of foreign money inflow today seems to signify
appetite for risk has somewhat revived," said Bae Sung-young, a
market analyst at Hyundai Securities, adding that the share
market's attractive valuation was helping it draw interest.
Foreign investors were buyers of a net 355.6 billion won
worth of stocks, the biggest daily foreign net buying amount in
nearly three months.
Pension funds bought a net 28.3 billion won, emerging as net
buyers for a sixth straight session.
Technology and auto stocks advanced, with LG Display
rising 3.9 percent and Kia Motors
gaining 2.8 percent.
But shares in Korea Electric Power Corp tumbled
more than 5 percent to a 5-1/2-month closing low, weighed down
by news of nuclear reactor shutdowns.
South Korea said it was suspending the operations of two
nuclear power reactors and extended a shutdown of a third to
replace cables that were supplied using fake certificates,
dragging KEPCO to a five-month low.
"Nuclear power plants are very energy-efficient, and the
shutdown of reactors in the high energy-demand season is
worrisome. Supply may come short," said Lee Hak-moo, an analyst
at Mirae Asset Securities.
Shares in Samsung SDI rose 4.6 percent to a near
2-month closing high, as shutdown of nuclear reactors sparked
hopes of strong sales of the battery maker's energy storage
system products, analysts said.
"Potential energy supply problems point to strong sale of
its energy storage system products," said Hwang Joon-ho, an
analyst at KDB Daewoo Securities.
Construction firms gained on signs of a revival in the
domestic real estate sector and expectations of fresh overseas
"We are hearing overseas construction deals are close to
being signed. Growing warmth in domestic real estate sector is
helping smaller construction firms," said Park Sang-yeon, an
analyst at Shinhan Investment Corp.
Daelim Industrial Co Ltd closed up 3.4 percent
after the builder said on Wednesday it won a 578.2 billion
Korean won order from the Kuwait National Petroleum Company.
Shares in Doosan Engineering & Construction rose
5.4 percent and GS Engineering & Construction ended
up 2.3 percent.
The KOSPI 200 benchmark of core stocks closed up
0.9 percent, while the junior KOSDAQ edged 0.01 percent
Move on day +0.75 percent
12-month high 2,042.48 3 January 2013
12-month low 1,758.99 25 July 2012
Change on yr +2.1 percent
All-time high 2,231.47 27 April 2011
All-time low 93.10 6 January 1981
(Reporting by Jungyoun Park; Editing by Sanjeev Miglani)