Program Buying Elevates Market

Share prices in Seoul closed slightly higher Tuesday on heavy program buying sparked by a stronger futures market.

The Korea Composite Stock Price Index, or Kospi, edged up 0.13 point to end at 608.91, after moving between 615.85 and 605.80. Trading volume was heavy at 436.6 million shares valued at 2.1 trillion won ($1.6 billion).

Decliners outnumbered risers 495 to 300, with 65 other stocks unchanged. No stock tumbled by the daily 15 percent limit and 19 issues jumped by that limit.

Despite the U.S. Nasdaq's 2 percent losses overnight, the Kospi gained more than 1 percent during morning trading on heavy program buying and on slightly better-than-expected results from Oracle Corp., a U.S. software developer, said an analyst at Daishin Securities Co. The index dipped into negative territory in the late afternoon, but domestic institutions' buying pushed it back up, he said.

Propping up the index, Hyundai Motor Co. rallied 6.4 percent to 28,300 won on news that its profits for the second quarter are projected to hit a record and that the carmaker will set up a truck joint venture with its overseas partner, DaimlerChrysler.

Among other large-capital stocks, Samsung Electronics Co. was up 0.2 percent at 205,500 won and SK Telecom Co. inched up 0.5 percent to finish at 208,000 won.

Blue-chip banks also ended higher; H&CB put on 1.4 percent to 28,400 won and its merger partner, Kookmin Bank, rose 1.2 percent to 17,300 won.

Other financial stocks remained in negative territory on profit-taking following recent sharp gains. Korea Exchange Bank shed 2.5 percent to 3,510 won; Hyundai Marine & Fire Insurance Co. lost 6.6 percent to 15,700 won; Good Morning Securities Co. was off 4 percent at 5,220 won.

The Kosdaq market continued to fall for the second day, with its composite index slipping 0.83 point, or 1 percent to 80.93.

All of the secondary market's 10 largest stocks fell, with KT Freetel down 1.4 percent at 39,000 won. LG Telecom declined 5.7 percent to 6,400 won, after the government ruled out granting a license for next-generation mobile phone service to a consortium led solely by the company.

by Kim Hyun-chul