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Korea shares ends higher as Samsung Elec soars

SEOUL: Samsung Electronics powered higher on Friday as a wave of foreign buying sparked a strong finish on South Korea's benchmark index, analysts said.

The Korea Composite Stock Price Index (KOSPI) was up 21.62 points or 2.49 percent at 889.24.

It rose 3.94 percent on the week.

"With Samsung Electronics as a market leader, the only way for the KOSPI to go was up," said Kim Seong-joo, an analyst at Daewoo Securities.

"Purchases from foreign investors were strong enough to eclipse institutional investors who stayed to the sidelines," said Kim at Daewoo Securities.

Analysts noted that institutional investors, which are big market players, were reluctant to open new positions ahead of book closings on March 31.

They had expected that to limit activity on the Kospi.

The Kosdaq over-the-counter market closed up 0.72 point or 0.31 percent at 232.68.

It fell 6.76 percent on the week. Stable international prices of dynamic random access memory (DRAM) chips and falling international inventories lured foreign investors to buy chip stocks, analysts said.

Samsung Electronics, the world's largest memory chip maker, rose 9.68 percent to 340,000.

Hyundai Electronics was up 2,250 won at 25,250.

Together the two command about a 40 percent share of the world's DRAM semiconductor market.

The sub-index for the electronics sector surged 7.55 percent.

Bank issues were little changed with a handful of blue chip stocks closing higher.

Korea Housing and Commercial Bank, one of the few banks with virtually no exposure to troubled Daewoo Group's debt, rose 450 won to 22,950.

"It will take a very long time for investors to show interest on bank issues. Perception is that it will take ample time for banks to clean up their balance sheets," said Kim Bun-do, an analyst at Daewoo Securities. Individual investors bought select large-cap technology shares on the Kosdaq, analysts said.

Telecommunications equipment maker Wellink rose by the Kosdaq's daily limit of 12 percent, up 32,000 won at 300,000.

Indisystem, an Internet website developer, rose 16,000 won to 291,000. On the main exchange, trade volume totalled 281.93 million shares, compared to Thursday's 254.91 million shares.

Trade was valued at 3.91 trillion won compared to 3.36 trillion won on Thursday.

Foreign investors bought a net 180.97 billion won worth of shares.

Individual investors sold a net 161.54 billion won worth.

Institutional investors sold a net 35.28 billion won worth of shares, though investment trust companies separately sold a net 44.88 billion won.

Advancers outpaced declining issues 555 to 270 with 60 shares unchanged.

The March futures on the KOSPI: closed up 3.95 points at 112.55, while the underlying spot index ended up 2.87 points at 111.15.

With institutional investors reluctant to open new positions ahead of their fiscal year book closings, analysts said they expect the KOSPI to see limited gains on Monday.

They noted that the opening of a third market stock market for start-ups scheduled for Monday may divert investor attention away from both the main exchange and Kosdaq, dampening both. -Reuters