Seoul shares up led by financials after Greek bank deal

SEOUL: Seoul shares gained on Tuesday, led by financial issues after a bank merger in Greece and positive US consumer spending data boosted sentiment, with foreign investors turning net buyers.

By 0224 GMT, the Korea Composite Stock Price Index (KOSPI) was up 1.05 percent at 1,848.77 points, set to gain for a fourth straight session.

Foreign investors were net buyers after three consecutive sessions of selling.

"The KOSPI is recovering from steep falls. This is driven by price merits rather than better fundamentals," said Lee Jae-man, an analyst at Tong Yang Securities.

"The index may have further room to rise as US President Barack Obama is set to unveil plans (next week) aimed at spurring job growth," he said.

Bank issues were among the top gainers after Greece's Alpha and EFG Eurobank sealed a merger on Monday, which is expected to trigger more deals to shore up banks battered by the debt crisis and recession.

Shares in Woori Finance Holdings jumped 5.7 percent, while KB Financial climbed 3.6 percent.

Domestic-focused issues gained, with Hyundai Department Store advancing 3.9 percent and Lotte Confectionery surging 6.2 percent.

Insurance counters firmed after media reports that Green Cross Holdings Corp was in talks to sell its stake in its unlisted insurance unit, which could fuel M&A activity in the sector.

Green Cross Holdings jumped 4.1 percent.

STX Offshore & Shipbuilding soared more than 10 percent, leading the shipbuilding index's gain, after reporting forecast-beating earnings on Monday.

Hyundai Engineering & Construction rose 2.2 percent after the construction firm said on Tuesday that it had secured a $1.5 billion order to build a coal-fired thermal power plant in Vietnam.

Copyright Reuters, 2011