Both Seoul Marts Post Gains of 5%

Seoul stocks rallied Wednesday, led by semiconductor shares, after U.S.-based Intel Corp. reported overnight that it slightly exceeded earnings forecasts for the first quarter.

The Korea Composite Stock Price Index jumped 26.03 points, or 5.06 percent, to 540 points.

"Intel's better-than-expected report added to sentiment that high-tech shares on the U.S. Nasdaq market might be rising," said an analyst at Kyobo Securities.

On that sentiment, the Nasdaq 100 Futures Index rose 2.5 percent, its daily limit.

Samsung Electronics soared 7.8 percent to 214,000 won ($162). Anam Semiconductor surged by the daily limit of 15 percent, ending at 4,620 won.

Hynix Semiconductor also touched the daily ceiling, not only because of Intel's news but also on expectations the chip maker will invite a large-scale foreign investment.

Other core blue chips were also strong. SK Telecom jumped 5.6 percent to 199,500 won. Korea Telecom was up 2.9 percent to 57,500 won. Pohang Iron & Steel added 5.2 percent, finishing at 89,400 won. Korea Electric Power Corp. climbed 4.3 percent to 22,000 won.

In total, 25 issues rose by the daily limit and five hit the downward limit. Gaining shares overwhelmed losers, 610 to 182.

Trade volume hit 495 million shares, a two-month high, as investors came off the sidelines. The daily turnover was 2.8 trillion won.

Foreign and institutional investors purchased, while retail investors took profits.

The Kosdaq market also surged. The composite index closed Wednesday at 72.19, up 3.88 points, or 5.68 percent. Trade volume increased sharply to 447 million shares, valued at 1.95 trillion won.

Leading telecommunication and dot-com shares led the bull market. KT Freetel rallied 7.3 percent to 41,850 won. KT M.Com gained 6.8 percent, ending at 10,250 won. Serome Technology, Daum Communications and Haansoft all soared by the daily limit of 12 percent.

Advancing issues overwhelmed decliners 524 to 50. Some 71 issues hit the daily ceiling, while only three stocks dropped by the limit.

by Moon So-young