Kospi tops 1,400 on bank, shipping shares

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Kospi tops 1,400 on bank, shipping shares

Korean stocks closed 0.55 percent higher yesterday after swinging in and out of positive terrain.

The Kospi advanced 7.63 points to 1,401.08, its highest since the beginning of this year. Volume was heavy at 758.9 million shares worth 9.39 trillion won ($7.44 billion), with gainers outpacing losers 474 to 340.

Bank shares traded in positive territory, mirroring gains in their U.S. counterparts.

Korea Exchange Bank, controlled by U.S. buyout firm Lone Star Funds, jumped 11.18 percent to 8,450 won after the state-run Korea Development Bank expressed an interest in buying the bank.

KDB chief executive Min Euoo-sung said yesterday that the Seoul-based bank is open to acquisitions as it prepares to become a private lender. The government won parliamentary approval last month to privatize Korea Development, with some shares to be sold within five years.

Ssangyong Motor, which entered court receivership in February under mounting debt, climbed 11.91 percent to 2,020 won after a South Korean court said Wednesday that auditors favored the survival of the troubled carmaker over its liquidation.

STX Pan Ocean Co., Korea’s biggest bulk carrier, rose 4.5 percent to 12,850 won. Korea Line Corp., the second-biggest, advanced 4 percent to 81,600 won. Both stocks rose to their highest in two weeks.

The Baltic Dry Index, a measure of world trade, posted its biggest gain in almost three months on demand for ships to haul coal and iron ore. The gauge of commodity-shipping costs jumped 8.9 percent to 2,065, according to the Baltic Exchange. The gain was the biggest since Feb. 9.

Hyundai Hysco, a maker of cold-rolled steel sheets, climbed 1.8 percent to 10,050 won, the highest since Oct. 2. Daewoo Securities Co. raised its recommendation to “buy” from “hold” in a report, saying the company’s earnings will turn around starting in the second quarter. The brokerage set its 12-month price estimate at 13,000 won. Operating profit, or sales minus the cost of goods sold and administrative expenses, will be 113 billion won in 2010, compared with an estimated 40 billion won in 2009, the brokerage said.

But gains in the Korean currency dented exporters. Chip giant Hynix Semiconductor declined 4.75 percent to 14,050 won, and top automaker Hyundai Motor shed 3.48 percent to 66,500 won. Yonhap, Bloomberg
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