Seoul shares gain

Seoul shares gained on Tuesday as banks and technology issues including KB Financial Group and LG Electronics rebounded sharply following recent sharp falls. The Korea Composite Stock Price Index finished up 1.41 percent at 2,048.17 points. KOSPI 200 September futures ended up 4.45 points at 269.80 points and the KOSPI 200 spot index rose 4.26 points to 268.65. The junior Kosdaq market ended up 0.51 percent at 459.57.
"The market saw a mainly technical rebound after losses in the previous session, with sharper bounces around sectors that had lost more sharply," said Lee Jin-woo, a market analyst at Mirae Asset Securities. "At this point, there is more upside potential than downside potential," said Y.S. Rhoo, a market analyst at Hyundai Securities. But foreign investors remained cautious, selling a modest 1.1 billion won ($1.02 million) worth of stocks, their fourth straight session of selling.
KB Financial Group, the holding company for South Korea's biggest commercial lender Kookmin Bank, gained 5.4 percent after five straight sessions of losses. Shinhan Financial Group climbed 4.4 percent. "Banks are expected to post a solid earnings recovery during the upcoming earnings season, and earlier jitters about the sector, such as issues with troubled savings banks, have abated," said Ku Yong-uk, an analyst at Daewoo Securities.
POSCO, the world's No 3 steelmaker, ended up 4.2 percent and Hyundai Steel, the country's No 2 steelmaker, climbed 3.8 percent. Some technology issues also climbed firmly, with LG Electronics, the world's No 3 handset maker, gaining 4.7 percent and LG Display, the world's No 2 flat panel maker, up 3.2 percent. But refiners lost ground, weighed by the latest weakness in crude oil prices, which could pressure product prices and sales. Shares in S-Oil, the country's No 3 crude oil refiner, fell 1.8 percent and SK Innovation, South Korea's No 1, shed 0.5 percent.