Smiles in the Mart As Stocks Surge

Share prices in Seoul ended higher Wednesday, with both the Kospi and Kosdaq indices hitting a two-month high on heavy foreign buying and the 2.5 percent overnight rise on the U.S. Nasdaq market.

The Korea Composite Stock Price Index added 6.34 points, or 1.1 percent, to 583.70, after moving between 587.18 and 580.39. Trading volume was very heavy at 595 million shares valued at 2.4 trillion won ($1.8 billion).

Advancing issues led decliners 439 to 335, with 79 other stocks unchanged. Ten issues soared by the daily 15 percent limit, while two tumbled by that limit.

The Kosdaq composite index also finished at the highest level since Feb. 26, gaining 2.03 points, or 2.6 percent, to 81.00.

Fueling investor sentiment, local bond yields fell, while the won's value jumped against the U.S. dollar.

On the main exchange, foreign investors were the main driving force behind the Kospi's rise, purchasing 285.5 billion won worth of shares. Their buying was focused on the so-called yellow chips, or medium-priced blue chips with sound performance, as they have reached their investment limit on most large-capitalized stocks, their long-time favorites, Those stocks include SK Telecom Co. and Korea Telecom Corp. Foreign holdings in Samsung Electronics Co. stood at a record-high level of 58.3 percent, making it difficult for overseas investors to purchase more of its stock.

Leading the day's gains, Hyundai Motor Co. surged 6.8 percent to 22,000 won, the highest in 16 months, after Korea's biggest carmaker said that its sales in the United States, its largest overseas market, stood at around 100,000 during the first four months, up 32 percent from the same period last year. Its affiliate, Kia Motors rallied 11.3 percent to 8,700 won. Among large-caps, Samsung Electronics was unchanged at 229,000 won, while SK Telecom gained 3.3 percent to 234,000 won.

On the Kosdaq market, Korea Telecom Freetel was up 3.5 percent at 48,850 won, and Daum Communi-cations Inc. shot up 12 percent to 41,700 won.

by Kim Hyun-chul