Index Above 600 In Heavy Trading

Seoul stock prices turned higher Wedndesday, with the key index rising above 600 points on heavy foreign and local institutional buying, analysts said.

The Korea Composite Stock Price Index added 5.05 points, or 0.84 percent, to close at 603.83, off a high of 607.59 and a low of 592.32.

Trading volume was heavy at 413 million shares valued at 2.15 trillion won ($ 1.72 billion). Gainers outnumbered losers 493 to 308, with 65 other issues unchanged.

Thirty-five shares jumped by the daily 15 percent limit, while nine fell by that limit.

"Although the U.S. Nasdaq market closed sharply lower overnight, overseas investors increased their purchases of Korean stocks, particularly financial issues," said Park Suk-hyun, an analyst at Kyobo Securities Co. "They sold electronics and telecommunication shares, but it wasn't heavy enough to affect the market."

Construction issues rallied on news that the North Korean leader, Kim Jong-il, is expected to visit Seoul soon. Improved Inter-Korean ties are believed to accelerate South Korean builders' participation in major construction projects planned in the North.

Hyundai Engineering & Construction Co. was the most heavily traded stock, up 6.55 percent at 2,360 won on 47.3 million shares.

Bank and insurance shares were also higher on rotational buying. KorAm soared by the day's limit to 7,090 won, and Samsung Fire & Marine Insurance Co. rose 6.04 percent to 37,750 won.

SK Telecom Co. was off 1.59 percent at 248,000 won. But most other key blue chips finished higher to lead the day's gains.

The Kosdaq composite index continued its winning streak for a fifth consecutive day, up 1.23 points, or 1.46 percent, at 85.31.

Hanaro Telecom Co. shot up 11.71 percent to 3,910 won, boosted by news that Samsung Electronics Co. and Qualcomm Inc. will join a consortium to bid for a third-generation mobile phone license for U.S.-style technology, called cdma2000.

by Kim Hyun-chul