Stocks Up Monday On Program Buys

Seoul stock prices recouped early losses to finish higher Monday, boosted by gains in large blue-chip shares on heavy local institutional and program buying, analysts said.

The Korea Composite Stock Price Index added 5.94 points, or 1.06 percent, to 565.38, off a low of 549.27. Trading volume was fairly heavy at 307.4 million shares valued at 1.56 trillion won ($1.23 billion).

But losers outnumbered gainers 552 to 255, with 50 other stocks unchanged. A total of 17 stocks fell by their daily limit of 15 percent, while 16 shares jumped by the limit.

The index dropped in early trading on news of a weaker U.S. Nasdaq market and Friday's bankruptcy of Korea Industrial Development Co.

"The market gained ground as a stronger futures market triggered heavy program buying in blue chips," said an analyst at Daishin Securities Co. "Large pension funds also supported the market."

Korea Industrial Development's insolvency took a toll on financial and construction issues. Hyundai Engineering & Construction Co. sank 6.77 percent to 1,860 won, and Korea Exchange Bank, the main creditor of both contractors, shed 1.43 percent to 3,110 won.

Key large-capitalized stocks ended higher. Samsung Electronics Co. rose 3.05 percent to 186,000 won, and Hyundai Electronics Industries Co. was up 2.52 percent at 3,460 won. SK Telecom Co. added 6.71 percent to 222,500 won.

The Kosdaq market ended a four-day losing streak on heavy buying from retail investors. Its composite index rose 2.33 points, or 3.23 percent, to 74.32. Trading was active; 392 million shares exchanged hands. Turnover was 1.94 trillion won. Internet and telecommunications rallied. Serome Technology shot up by the daily 12-percent limit to finish at 20,200 won. KT Freetel added 4.49 percent to 39,550 won, and LG Telecom Co. closed up 7.44 percent at 4,620 won.

by Kim Hyun-chul