Seoul stocks rise, led by financials, construction

(Updates to mid-morning)

SEOUL, March 24 (Reuters) - Seoul stocks rose 0.67 percent
early on Monday, led by construction and financial shares, as
more stable commodities prices and easing U.S. mortgage market
concerns soothed investors' fears about a global credit crunch.

"Unreasonably high commodities prices are returning to
normal and this, along with the perception that U.S. financial
markets have hit bottom, is boosting investor sentiment," said
Kim Hak-kyun, an analyst at Korea Investment & Securities.

Construction shares such as Hyundai Engineering &
Construction Co (000720.KS: Quote, Profile, Research, Stock Buzz) and Daewoo Engineering &
Construction Co Ltd (047040.KS: Quote, Profile, Research, Stock Buzz) rose, with Hyundai Engineering
up 1.84 percent at 88,600 won and Daewoo up 2.25 percent at
20,450 won.

"Easing inflation concerns are encouraging investors to
pick up severely beaten-down financial and construction
shares," said Lee Sun-yeob, an analyst at Goodmorning Shinhan
Securities.

The Korea Composite Stock Price Index advanced
0.67 percent to 1,656.67 points as of 0202 GMT.

Foreigners bought a net 20.27 billion won worth of Seoul
stocks for a second consecutive session as of 0135 GMT on
Monday.

Meanwhile, a local newspaper reported on Monday that Korea
Development Bank (KDB), Hyundai's top shareholder, is likely to
speed up the sale of Hyundai Engineering, also lifting the
shares [ID:SEO297509].

Banking shares also gained, with Kookmin Bank (060000.KS: Quote, Profile, Research, Stock Buzz)
gaining 2.41 percent to 55,200 won, and Shinhan Financial Group
(055550.KS: Quote, Profile, Research, Stock Buzz) rising 3.43 percent to 51,300 won.

Oil refiners rose after OPEC's president said he expected
steady oil prices for the rest of 2008, raising hopes of
improved refining margins.

"A higher crude price is usually good news to refiners,
but excessive jumps lead to falling demand and smaller refining
margins," said Lim Jin-kyun, an analyst at Daewoo Securities.

S-Oil (010950.KS: Quote, Profile, Research, Stock Buzz) rose 1.46 percent to 62,700 won and SK
Energy (096770.KS: Quote, Profile, Research, Stock Buzz) advanced 1.93 percent to 105,500 won.

(Reporting by Park Jung-youn; Editing by Marie-France Han
and Jacqueline Wong)