Market Touches a High For Year Before Settling

Share prices in Seoul closed slightly higher Friday, losing most of their earlier gains on foreign selling and profit-taking by retail investors.

The Korea Composite Stock Price Index edged up 1.83 points, or 0.3 percent, to end at 624.11. Trading volume was very heavy at 634 million shares valued at 2.9 billion won ($2.3 million).

The benchmark index jumped to 633.16, the highest this year, after Alan Greenspan, head of the U.S. Federal Reserve Board, suggested additional interest-rate cuts if the U.S. economy continues to slow down, analysts said. But most of the gains were erased by profit-taking and heavy foreign selling in both the cash and futures markets.

Advancing issues led losers 473 to 332, with 52 other stocks unchanged. Twenty-six shares jumped by the daily limit of 15 percent, while nine declined by that limit.

The Kosdaq market was also higher, but gains were marginal amid a lack of market-moving news and shares. Its composite index was up 0.42 points, or 0.5 percent, at 83.43.

On the Korea Stock Exchange, large-capital stocks led the market's advance. Hynix Semiconductor Inc. surged 10.6 percent to 4,420 won on a rumor that the debt-ridden chipmaker has sold $400 million of stock to overseas investors to help pay its debts, although the company did not confirm it. It was the most heavily-traded stock, with a volume of 101 million shares.

Korea Electric Power Corp. rose 3.9 percent to 24,200 won on expectation of its privatization. Kookmin Bank added 2.7 percent to 17,150 won and H&CB, its merger partner, put on 2.2 percent to 28,300 won.

Limiting gains, Samsung Electronics Co. shed 2 percent to 222,000 won and SK Telecom slipped 1.5 percent to 224,500 won. Pohang Iron & Steel Co. slid 2.3 percent to 107,500 won on profit-taking.

On the Kosdaq market, Kookmin Credit Card Co. was up 4 percent at 34,150 won. LG Telecom Co. rose 3.2 percent to 7,120 won, while KT Freetel sank 1.8 percent to 43,200 won.

by Kim Hyun-chul