Seoul stocks hit 1-mth high on banks, Samsung Sec

(Updates to mid-morning)

SEOUL, Feb 19 (Reuters) - Seoul stocks rose 1 percent to hit
a one-month high on Tuesday, as lenders such as Kookmin Bank
tracked firmer European peers, while Samsung Securities jumped a
day after announcing a surprise surge in January earnings.

The battered financial sector was back in favour as investors
snapped up seemingly cheap valuations, and as hopes grew that
earnings results from major European banks this week would show
improvement in writing down subprime mortgage losses.

POSCO Co Ltd (005490.KS: Quote, Profile, Research, Stock Buzz) rose 1.75 percent to 524,000 won,
with analysts saying that the 65 percent jump in iron ore
purchase prices announced Monday cleared uncertainty, adding
POSCO would easily pass on the increased costs to customers.
[ID:nPEK348125]

"The news of Britain nationalising Northern Rock showed that
a government would step in to stave off a credit crisis in any
form, helping soothe credit market worries," said Won Jong-hyuk,
an analyst at SK Securities.

"Though credit market strains and economic growth worries
would likely continue to prevent markets from regaining ground
soon, stocks seem to have pretty much seen a bottom."

The Korea Composite Stock Price Index was 0.98
percent higher at 1,712.94 points as of 0123 GMT, having earlier
touched 1,722.71 points, its highest reading since January 21.

With U.S. stock markets closed on Monday for the Presidents'
Day holiday, local stocks took a cue from firmer European stocks
which were boosted by financial companies.

Top local lender Kookmin Bank (060000.KS: Quote, Profile, Research, Stock Buzz) rose 1.18 percent
to 60,200 won and second-ranked Shinhan Financial Group
(055550.KS: Quote, Profile, Research, Stock Buzz) firmed 2.04 percent to 50,100 won. Third-biggest
Woori Financial Group (053000.KS: Quote, Profile, Research, Stock Buzz) advanced 3.15 percent to 17,950
won.

Brokerages also rallied across the board, buoyed by Samsung
Securities' robust profits and amid growing optimism that the
worst of the stock market volatility might be almost over.

Samsung Securities Co (016360.KS: Quote, Profile, Research, Stock Buzz) jumped 5.59 percent to
71,800 won, after it said late on Monday its net profit in
January more than doubled from a year ago to 54.2 billion won,
widely beating market forecasts.

Hyundai Securities (003450.KS: Quote, Profile, Research, Stock Buzz) gained 3.74 percent to 18,050
won.

(Reporting by Kim Soyoung; Editing by Keiron Henderson)