Shares Edge Up On Retail Buying

Share prices in Seoul ended slightly higher Friday, led by individual retail purchases and sharp gains in Daewoo Motor Sales amid a growing expectation of a General Motors takeover of the company.

The Korea Composite Stock Price Index edged up 1.68 points, or 0.3 percent, to close at 583.06. Trading volume was heavy at 546.7 million shares worth 1.6 trillion won ($1.2 billion).

Advancing issues outnumbered decliners 477 to 308, with 76 other stocks unchanged. Thirty stocks surged by the daily 15 percent limit, while none was down by that limit.

"Foreign investors were cautious ahead of the planned announcement of the U.S. monthly producer price data and the consumer confidence index due out Friday night," which would affect the U.S. Federal Reserve Board's decision on its key interest rates Tuesday, said an analyst at Daishin Securities Co.

Daewoo Motor Sales, a domestic retail arm of unlisted Daewoo Motor Co., jumped by the daily limit to 3,965 won, its highest level in almost nine months. The share has more than doubled since last week on a series of foreign and local media reports of an imminent acquisition of the bankrupt carmaker by General Motors.

Boosted by retail buying, LG Household & Health Care, a household goods and cosmetics maker, soared 10.3 percent to 24,000 won and The Hite, a beer brewery company, rose 1.7 percent to 49,800 won.

Among key large-capitalized blue chips, Samsung Electronics Co. shed 2 percent to 220,500 won, while SK Telecom Co. gained 2.3 percent to 221,000 won.

The Kosdaq market was also marginally higher despite the Nasdaq's overnight losses. Its composite index added 0.31 point, or 0.4 percent, to 81.72 on volume of 452 million shares worth 2.7 trillion won.

LG Telecom Co. added 1.3 percent to 6,300 won on reports that British Telecommunications plans to sell a 21 percent stake in the company to Deutsche Telekom. KT Freetel was off 0.1 percent at 44,200 won.

by Kim Hyun-chul