* Samsung Elec hits new lifetime high
* LG Elec weighed by EU fine worries
* Foreigners buy for 11th straight session
By Somang Yang
SEOUL, Dec 13 Seoul shares rose to a fresh
two-month high on Thursday morning amid broad-based gains after
the U.S. Federal Reserve ramped up monetary stimulus and set
clear policy guidelines.
The Korea Composite Stock Price Index (KOSPI) ticked
0.4 percent higher to 1,983.66 points by 0138 GMT. The index is
nearing the psychologically important 2,000-mark last touched in
"The Fed's easing measures met the market's expectations,
while the setting of clear inflation and unemployment targets
exceeded hopes and will clear uncertainty on the monetary
front," said Kim Yong-goo, an analyst at Samsung Securities.
The Federal Reserve ramped up its monetary stimulus and said
it would keep benchmark U.S. interest rates near zero until the
jobless rate falls sharply.
Some 415 stocks advanced across the index while 284
Shares in Samsung Electronics hit a new
life-time high of 1.508 million won during early trade on
expectations of strong earnings fuelled by its mobile business.
The index heavyweight was trading 1.2 percent higher.
However, other large IT shares declined, with LG Electronics
falling 1.5 percent.
"LG Electronics will have to set aside cash for the EU
fines, which puts pressure on its profit margin," said Lee
Sun-tae, an analyst at NH Investment & Securities.
The European Commission on December 5th imposed the biggest
antitrust penalty in its history on LG Electronics and five
others for running two cartels for nearly a decade.
LG Electronics may have to pay more than 295.6 million
euros. The company said it plans to appeal the ruling.
Apple Inc suppliers SK Hynix and LG
Display were also down slightly, although Lee said
this was for cyclical and profit-taking reasons.
Among small caps, Tongyang Inc and affiliate
Tongyang Networks Corp rose by the daily permissible
limit of 15 percent on hopes for a corporate restructuring.
Foreigners bought a net 128 billion won worth of KOSPI
shares near mid-session, buying for the eleventh straight
session and insulating the index from selling by retail
The KOSPI 200 benchmark of core stocks was up 0.5
percent, while the junior KOSDAQ edged 0.7 percent
($1 = 1075.0000 Korean won)
(Editing by Richard Pullin)