Wall Street Rally Heats Up Kospi

Equity prices on the Korea Stock Exchange ended a seven-day losing streak Friday, with the main index gaining more than 2.5 percent to regain the 500-point mark. The market was boosted by the overnight rally on Wall Street and the government's intervention in the foreign exchange market to reverse the decline in the value of the won.

The Korea Composite Stock Price Index closed up 12.53 points at 506.22, after moving between 518.20 and 504.54. Trading was active, with 369 million shares changing hands. Daily turnover amounted to 1.74 trillion won ($1.30 billion).

Advancing issues beat retreaters 625 to 180, with 60 other stocks unchanged. Twenty shares soared by the daily limit of 15 percent, while 15 fell by that limit.

Analysts said that sentiment was fueled by the sharp overnight gains in the U.S. stock markets, where a Thursday rally in high-tech shares sent the Nasdaq index surging 146.20 points, or 8.92 percent, to 1,785, its third-largest one-day percentage gain. The blue-chip Dow Jones in-dustrials jumped 402.63 points, or 4.23 percent, to 9,918.05, the second-biggest point gain ever.

Foreign investors went on a hectic shopping spree, purchasing shares worth 150 billion won. Gains were limited, however, by a wall of selling near the 520-point level.

"Whether Wall Street will continue the upward momentum will be the deciding factor for the local stock market," said Kim Jung-pyo, an analyst at Kyobo Securities Co.

Key blue chips were buoyed by the tech rally on Wall Street. Samsung Electronics Co. firmed 4.92 percent to 192,000 won, and SK Telecom Co. advanced 5.15 percent to 173,500 won. Brokerage stocks also finished higher, while bank shares inched down on foreign selling. Good Morning Securities Co. rose 5.18 percent to 4,570 won. H&CB lost 2.11 percent to 20,850 won.

The Kosdaq market turned higher for the first time in eight sessions, helped by gains in Internet and telecommunication shares. Its composite index was up 2.17 points, or 3.37 percent, to end at 66.51. Serome Technology surged 7.75 percent to 14,600 won, and Korea Telecom Freetel added 2.77 percent to 38,900 won.

by Kim Hyun-chul