Seoul shares rose on Friday, buoyed by signs of strength in the US economy and a solid bounce in battered automakers, but gains were limited by institutional selling that continued for a second consecutive session. "US data and the fact that market was ripe for a rebound after its latest falls helped lift market today," said Lee Jin-woo, a market analyst at Mirae Asset Securities.
The number of Americans filing new claims for jobless benefits dropped to a 3-1/2 year low last week, suggesting the weak US economy is gradually improving even though factory data proved more mixed. "The market will be fairly rangebound through to the end of the year. We are pinning some hopes on first-quarter earnings," said Yoo Soo-min, a market analyst at Hyundai Securities.
Foreign investors were buyers of a net 23.6 billion won ($20.29 million) worth of stocks, snapping five consecutive sessions of selling. Institutions were sellers of a net 27.2 billion won, offloading stocks for a second straight session. The Korea Composite Stock Price Index finished up 1.15 percent at 1,839.97 points.
Firm gains in automakers and shipyards gave market support. Hyundai Motor Co advanced 2.5 percent after declining for three straight sessions. Kia Motors Corp ended up 2.3 percent after six consecutive losing sessions. Hyundai Motor was forecast to post a 55 percent year-on-year jump in fourth quarter net profit, and Kia Motors is expected to post 32 percent year-on-year growth, said Tong Yang Securities analyst Ahn Sang-joon. Samsung Electronics, the world's No 1 memory chip maker, rose 3 percent.
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