Seoul Rebounds On New York Cue

Seoul stocks snapped back Wednesday after the U.S. Nasdaq composite index closed above the 2,000 benchmark overnight. The Korea Composite Stock Price Index, or Kospi, climbed 15.31 points, 2.9 percent, to close at 543.28.

Most analysts said Wednesday's rally on Seoul markets was a technical rebound spurred by bargain hunters. They say they expect seesaw trading in the short run.

Foreign investors began to purchase, ending a four-day selling spree. Retail investors also bought; institutional investors sold. Trade volume was 415 million shares, valued at 1.78 trillion won ($1.4 billion).

Bargain hunters rushed to brokerage shares, which had been battered Tuesday. Both common and preferred stocks of Good Morning Securities soared by the daily limit of 15 percent. Sejong Securities' common shares and Daewoo Securities' preferred shares also touched the ceiling.

Major semiconductor shares were also strong, as their counterparts did well overnight on Wall Street. Samsung Electronics jumped 7.14 percent to 195,000 won. Hyundai Electronics Industries gained 5 percent, ending at 3,150 won.

Other blue chips were generally unchanged. Korea Electric Power Corp. remained at Tuesday's level of 23,000 won. Pohang Iron & Steel Co., SK Telecom and Korea Telecom squeezed out marginal gains of 0.1 to 0.5 percent.

A total of 53 issues jumped by the daily limit and five shares hit the downward limit. Advancing issues overwhelmed decliners 735 to 106.

The Kosdaq market also rebounded on bargain hunting. The composite index closed at 72.04, up 3.47 points or 5 percent. Trade volume was 356 million shares, valued at 1.78 trillion won.

Gaining issues led losers 549 to 43. A total of 75 issues soared by the daily limit of 12 percent, while seven issues fell that limit. Large-cap telecommunication and dot-coms led the market. KT Freetel rose 2.63 percent to 39,000 won. KT M.Com was up 3.63 percent to 9,430 won.

Serome Technology, Daum Communication and Haansoft jumped about 6 percent each.

by Moon So-young