Seoul shares up on carmakers; output data weighs

By Kim Yeon-hee

SEOUL, March 3 (Reuters) - Seoul shares inched higher on Wednesday, led by Hyundai Motor and Kia Motors on the back of strong sales and with Woori Finance jumping over hopes for a stake sale by the government.

Trade was rangebound through the session, with January factory output data coming out weaker than expected and reinforcing the view that the economy was losing steam.

'Markets have been holding up relatively well, despite concerns about Greece's debt problems and the unwinding of government stimulus packages,' said Jon Jong-woo, a senior fund manager at Samsung Investment Trust Management, said

'In the short term, focus will be on how markets digest those uncertainties. Weakening leading indicators in South Korea and China will make it difficult to attempt at a strong rebound.'

The Korea Composite Stock Price Index added 0.45 percent to end at 1,622.44 points. It was still down 6 percent from its January peak.

Earlier data showed South Korea's industrial output in January was unchanged from December, slightly below an expected rise of 0.4 percent.

The composite leading indicator was 11.3 percent, down 0.3 percentage points from December, its first month-on-month drop in 13 months.

'Production is at peak now, but given that the leading indicator turned lower, it would be right to interpret the data as a signal of a slowing momentum,' said So Jae-yong, a Hana Daetoo Securities economist.

Shares in Hyundai Motor advanced 0.88 percent to 114,500 won, while its affiliate Kia Motors rose 2.52 percent, after climbing to its strongest level since February 2006.

The two carmakers posted a jump in February sales, fanning expectations that they would continue to gain market share helped by Japanese rival Toyota's safety crisis and the launch of new models in the United States.

Woori Finance Holdings, 66 percent owned by the government, gained 4.4 percent to close at its highest in nearly one month.

Hana Daetoo Securities analyst Han Jeong-tae attributed the gains to market rumours that the privatisation of Woori, the country's No. 3 financial services group, might pick up speed and involve Woori's buyback of some of its shares from the government.

But a Woori spokesman said little progress had been made on detailed plans to sell the government stake in the group.

Among technology issues, LG Display added 2.71 percent after a surprise jump in February exports eased concerns about the impact of policy tightening in countries like China on overseas shipments. Keywords: MARKETS KOREA STOCKS



Foreign investors bought a net 85 billion won worth of shares after scooping up a net 422 billion won on the main board on Tuesday, their largest single-day purchase since late November.

Local institutions picked up a net 175 billion won of stocks, while individual investors sold a net 244 billion won.

Decliners outnumbered advancers 412 to 380 with 90 issues ending unchanged.

Trading volume by 0655 GMT was 394 million shares worth 3.2 trillion won, down from 408 million shares valued at 4 trillion won in the previous session.

The junior Kosdaq market edged up 0.33 percent to close at 509.63.

Move on day +0.45 percent
12
month high 1,723.22 19 JAN 2010
12
month low 992.69 3 MAR 2009

Change on yr -3.6 percent

All-time high 2,085.45 1 NOV 2007

All-time low 93.10 6 JAN 1981

(Editing by Jonathan Hopfner)

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