Stocks Stay Aloft On U.S. Updraft

Seoul stocks ended higher Monday after Wall Street rallied Friday on anticipation that the U.S. Federal Reserve Board would aggressively cut interest rates. The Korea Composite Stock Price Index rose for the fifth consecutive trading day, to close at 596.5, up 10.9 points, or 1.9 percent.

Trade volume was 472 million shares, valued at 2.11 trillion won ($1.62 billion). Institutional investors bought shares; foreign and retail investors took profits.

Brokerage houses were extremely strong. "Investors rushed to securities firms on expectation of a liquidity-driven rally following the Fed's expected rate cut and in anticipation of the local brokerage industry's restructuring plan, which the government is promoting," said an analyst at Daishin Securities.

Hyundai Securities Co. surged by the daily limit of 15 percent to 8,560 won. American International Group is reportedly close to a decision to buy the brokerage. Daewoo Securities Co. also hit the daily ceiling, ending at 10,550 won. LG Investment & Securities Co. was up 13 percent to 9,300 won.

Daewoo Motor Sales Corp. soared by the daily limit to 2,700 won, after Deputy Prime Minister Jin Nyum said negotiations with General Motors Corp. to buy Daewoo Motor Co. had reached their final stages.

Key blue chips were also strong. Samsung Electronics added 3.1 percent, ending at 230,000 won. Korea Electric Power Corp. rose 1.5 percent, ending at 23,650 won. Pohang Iron & Steel was up 1.1 percent to 101,000 won. SK Telecom and Korea Telecom squeezed out marginal gains of 0.2 to 0.4 percent.

Twenty-three issues hit the daily ceiling, and two tumbled to their lower limit. Advancing shares led decliners 517 to 260.

The Kosdaq composite index climbed 2.36 points, or 2.9 percent, closing at 82.84. Trade volume was heavy at 490 million shares. The daily turnover was 3.30 trillion won. A total of 70 issues climbed by 12 percent, the daily ceiling, and only three fell by that margin. Gaining shares overwhelmed losers 443 to 112.

by Moon So-young