4% Gains in Seoul After U.S. Upturns

Shares in Seoul closed sharply higher Thursday, with the benchmark index gaining more than 4 percent, boosted by the U.S. Federal Reserve Board's interest-rate cut.

The Korea Composite Stock Price Index, or Kospi, climbed 23.99 points to 596.39. Trading was active, with 656 million shares changing hands. Daily turnover stood at 2.2 trillion won ($1.7 billion).

Advancing issues swamped losers 591 to 208, with 66 other stocks unchanged. Thirty shares jumped by the daily 15 percent limit, while five issues plunged by that limit.

The Kosdaq composite index also turned higher, finishing up 3.20 points, or 4 percent, at 83.32, its highest level in nearly three months. Volume was heavy at 518 million shares valued at 2.8 trillion won.

"Investor sentiment improved rapidly, as Wall Street staged sharp gains overnight, reacting belatedly to the Fed rate cut," said an analyst at Daishin Securities Co. "Consumer confidence has risen for four straight months, brightening the prospect for an economic recovery."

Leading the gains on the main exchange, Samsung Electronics Co. added 5.2 percent to 221,500 won, after Moody's Investors' Service, an international credit-rating agency, upgraded its long-term debt ratings on Wednesday, citing improvements in the chipmaker's financial strength.

SK Telecom Co. soared 7.2 percent to 224,000 won and Pohang Iron & Steel Co. rallied 9.4 percent to 111,000 won on heavy buying by foreign investors.

Bank and brokerage shares were also bullish. Korea Exchange Bank was up by the daily limit at 2,670 won and Chohung Bank shot up 10 percent to 2,430 won. Samsung Securities Co. rose 2.9 percent to 37,000 won.

Daewoo Motor Sales, the domestic retail arm of bankrupt Daewoo Motor Co., plummeted 15 percent to 3,785 won on profit-taking following recent sharp gains. The earlier activity was triggered by growing expectation of General Motors Inc.'s takeover of the carmaker.

On the Kosdaq market, KT Freetel was up 5.4 percent at 45,300 won and Dreamline, an Internet service provider, rocketed 12 percent to 9,430 won.

by Kim Hyun-chul