Stocks Edge Up In Monday Trades

Share prices on Seoul stock markets ended slightly higher Monday, backed by local retail buying in financial stocks.

The Korea Composite Stock Price Index gained 1.8 points, or 0.3 percent, to 585.32, after moving between 588.92 and 580.59. Trading volume was heavy at 444.3 million shares valued at 1.77 trillion won ($1.41 billion).

Advancing issues outstripped losers 507 to 299, with 60 other stocks unchanged. A total of 34 shares jumped by the daily 15-percent limit, while 10 fell by that limit.

"Investor sentiment was boosted by gains in the U.S. Nasdaq over the weekend and renewed hope of a U.S. interest rate cut that might come earlier than expected," said an analyst at Daewoo Securities Co. Investors also expected that pension funds would increase the equity weighting in their portfolios, he added.

The index approached the 590-point level at one point, but lost some of its gains on foreign selling in large blue-chip stocks.

Financial issues, including bank, brokerage and insurance shares, led the day's gains. H&CB, the nation's largest mortgage lender, added 1.87 percent to 27,200 won, and Good Morning Securities Co. rose 2.7 percent to 5,700 won. Samsung Fire & Marine Insurance Co. was also up 2.7 percent at 36,200 won.

Key heavyweights were generally lower on foreign and local institutional selling. Korea Telecom was off 1.6 percent to finish at 66,200 won, and Pohang Iron & Steel Co. lost 1.5 percent to 97,500 won. Samsung Electronics Co. and SK Telecom Co. ended flat.

Daewoo Heavy Industries Co. continued to rise by the daily limit － now for 17 consecutive days － and was the most heavily-traded stock on 82.4 million shares. It has soared by a whopping 1,300 percent to 130 won since Feb. 2, when it was traded at just 10 won.

The Kosdaq market also rose for the second straight session on heavy retail purchases and reinvigorated foreign buying. Its composite index closed up 0.68 point, or 0.84 percent, at 81.25.

Key telecom and Internet stocks were lower, with KT Freetel down 1.22 percent at 40,600 won

by Kim Hyun-chul