Large-Caps, Banks Lead Market’s Rise

Equity prices in Seoul turned higher Wednesday, led by gains in largecapitalized stocks and banking issues on growing expectation about progress in key restructuring issues.

The Korea Composite Stock Price Index gained 6.9 points, or 1.1 percent, and closed at its high for the day, 614.05. Its bottom for the day was 607.48. Trading volume rose to 392.4 million shares valued at 1.9 trillion won ($1.5 billion).

Advancing issues overwhelmed retreaters 500 to 286, with 71 other stocks unchanged. Twenty-eight issues jumped by the daily limit of 15 percent, while just two were down by that limit.

Despite concern over the coming expiration of stock futures and options contracts, investor sentiment was boosted by expectation that debt-ridden Hynix Semiconductor Inc. will successfully issue overseas depository receipts and bonds to raise $1.5 billion, analysts said. The expected takeover bid to be made by General Motors Corp. for ailing Daewoo Motor late this week also helped improve sentiment, the analysts added.

Although Hynix's offerings affected the market positively, its shares shed 6.2 percent to 4,325 won, as foreign investors sold them to buy its depository receipts at a cheaper price.

Other large-caps ended higher to lead the day's gains. Samsung Electronics Co. gained 1.4 percent to 214,000 won and SK Telecom Co. added 3.6 percent to 214,000 won.

Bank stocks rose for the fourth consecutive session on expectations that Hynix's fund-raising will reduce their credit risk. Korea Exchange Bank, the chipmaker's main lender, added 1.1 percent to 3,355 won; Hana Bank was up 4 percent at 8,500 won.

Insurance issues also continued their rally on improved earnings prospects, with Ssangyong Fire & Marine Co. up by the daily limit. Hyundai Marine & Fire Insurance Co. soared 12 percent to 18,650 won.

The Kosdaq composite index moved 1.56 points, or 2 percent on volume of 406 million shares.

Leading the market's gains, Kookmin Credit Card Co. shot up by the daily limit of 12 percent. KT Freetel firmed by 2.3 percent to 40,100 won.

by Kim Hyun-chul