Seoul shares climb on banks

South Korean shares inched up to end at a new 22-month high on Thursday, with heavyweight banks extending gains, but investors cashing in on recent gainers such as market leader Samsung Electronics Co Ltd.
Gains in the previous session meant that positive comments from US Federal Reserve Chairman Alan Greenspan, which had lifted US blue chips to a 32-month high, had limited impact.
"Greenspan delivered exactly what market players had wanted to listen to, but the local market had already risen a lot," said Cho Duk-hyun, an analyst at Hanwha Securities.
The benchmark Korea Composite Stock Price Index (KOSPI) finished up 0.18 percent at 877.95 points, drifting around its previous close throughout the session. The index rose for the sixth trading day in a row.
Greenspan said on Wednesday that the US economy had turned the corner toward vigorous growth but that policy-makers could be patient about interest-rate rises.
South Korea is the most favoured stock market in Asia among foreign investors so far this year after lagging much of the region last year.
Samsung Electronics, the world's largest memory-chip maker, fell 0.9 percent to 549,000 won as profit taking emerged after the stock hit a record high of 560,000 won at the open.
Market talks that Kookmin Bank was looking to take over LG Investment & Securities Co, the country's second-biggest brokerage, spurred heavy buying of LG Investment.
But the LG shares trimmed much of their gains to end up 3.86 percent at 9,140 won after Kookmink denied the rumour in a filing to the regulator.
Among leading gainers, Hyundai Elevator Co soared by its 15 percent daily limit to 68,500 won after Kumgang Korea Chemical (KCC)said it would buy 500,000 shares, or a seven percent stake, in the elevator maker at 70,000 won per share from the market over two months from next Wednesday.
Trade volume stood at 444.1 million shares, compared with 475.3 million on Wednesday. Turnover was valued at 3.08 trillion won, versus 3.10 trillion won. Losers topped gainers 383 to 351, with 89 stocks unchanged.
The March KOSPI 200 futures index was up 0.15 point at 115.25 and the underlying KOSPI 200 spot index rose 0.28 point to 115.20.
The junior Kosdaq was down 0.60 percent at 437.47.
Foreign investors sold a net 125.7 billion won in shares, while institutional investors bought a net 82.1 billion won.
Retail investors sold a net 47.7 billion won worth of shares.