Program Buying Takes Market Up

Share prices on the Korea Stock Exchange turned higher Wednesday, recovering early losses on heavy program buying sparked by a stronger futures market.

The Korea Composite Stock Price Index gained 10.7 points, or 1.9 percent, to 566.34, off a low of 551.25. Trading volume was heavy at 376.5 million shares valued at 1.8 trillion won ($1.4 billion).

Advancing issues outnumbered decliners 402 to 353, with 105 other stocks unchanged. Twenty-one shares jumped by the daily limit of 15 percent, while seven tumbled by that limit.

The market suffered a setback in early trading after the U.S. Nasdaq's 2.1-percent drop overnight, but moved higher on a wave of program buying. Indicating improved investor sentiment, customer deposits surged to 8.6 trillion won, the highest level in two months.

Key large-capital stocks led the market higher. Samsung Electronics Co. added 2.7 percent to 226,000 won. SK Telecom Co. gained 1.8 percent to 222,000 won on news that it plans to buy back its shares to boost its stock price. Hynix Semiconductor Inc. rose 4.9 percent to 3,230 won.

Financial issues also rose. Kookmin Bank added 3.8 percent to 14,900 won and its merger partner, H&CB, was up 2.8 percent at 24,300 won.

The Kosdaq market closed 1.25 points, or 1.7 percent, higher at 76.97, the highest since March 9. Volume was very heavy at 421 million shares worth 2.4 trillion won. Telecommunication and equipment makers led the day's advance. Korea Telecom Freetel put on 3 percent to 45,750 won, and LG Telecom Co. jumped 5 percent to 5,230 won.

by Kim Hyun-chul