Seoul shares up fueled by techs;Samsung Elec jumps

* KOSPI trades firmer, up 0.63 pct

* Samsung Electronics rallies on bullish Q2 forecasts

* Display issues up on LCD panel price gains
(Updates to close)

By Jungyoun Park

SEOUL, July 6 (Reuters) - Seoul shares ended higher on Monday
lifted by a spike in Samsung Electronics (005930.KS) on strong
quarterly earnings forecasts, while display issues also rose on
the back of strengthening panel prices.

The Korea Composite Stock Price Index (KOSPI)
finished up 0.63 percent at 1,428.94 points.

"Shares were largely led by a rally in Samsung Electronics,
thanks to surprisingly bullish earnings estimates," said Kang
Sung-won, a market analyst at Dongbu Securities.

"But since the main index has neared its 2009 high, shares
will likely trade within a boxed range from here. I think most
expectations for second-quarter earnings are already reflected at
the index's current level," Kang said, adding however that
continued earnings momentum into the third quarter would help
markets achieve a more meaningful "level-up".

Analysts also said news of additional missile launches by
North Korea had a limited impact on markets.

"The response from the United States has not yet reached a
level that alarms investors yet," said Kim Seung-han, a market
analyst at HI Investment Securities.

Markets were led by Samsung Electronics' 5.49 percent rise
after the world's largest maker of memory chips and flat screen
TVs on Monday said it expected to post a consolidated operating
profit of 2.2 trillion to 2.6 trillion won ($1.74 billion-$2.05
billion) for the April-June quarter.[ID:nSEO324424]

Samsung Electronics is the largest stockon the KOSPI,
accounting for 10 percent of the main index's market
capitalisation.

"The numbers came out stronger than the market had expected,
and this is probably due to robust handset sales ... provided
that Samsung Electronics keeps up with this trend, its
third-quarter earnings will come out even stronger, as its memory
chip unit will do much better then," said Kim Gee-soo, a market
analyst at Goodmorning Shinhan Securities.

Other key technology issues also rose. LG Electronics
(066570.KS) ended up 3.8 percent and Hynix Semiconductor
(000660.KS) rose 0.67 percent.

Display and components makers advanced after DisplaySearch on
Monday said global prices for liquid crystal displays (LCD) had
increased in July from a month earlier.

The research firm said gains in LCD panel prices in July were
far higher than the market had expected and output still could
not meet demands.

Display maker LG Display (034220.KS) rose 0.89 percent.
Display components maker Kumho Electric (001210.KS) gained 5.59
percent and Hansol LCD Inc (004710.KS) climbed 3.15 percent.

LG Life Sciences (068870.KS) rallied, rising 4.01 percent, on
a rating and target price raise by a brokerage, and on continued
earnings expectations toward the South Korean pharmaceutical
company.

IBK Securities upped its rating on LG Life Sciences to "buy"
from "neutral" and lifted its target price by 9.7 percent to
68,000 from 62,000 won.

IBK Securities cited "an earnings upgrade and accomplishments
made by its research and development unit" as upgrade factors.

But POSCO (005490.KS) declined 0.92 percent, pressured by
negative brokerage notes.

JPMorgan said in a report dated July 5 it expected
second-quarter earnings by the world's No.4 steelmaker to come
out "weak".