Seoul shares gain

Seoul shares logged a 1.1 percent gain on Thursday, ending a four-day decline, as local investors chased beaten-down brokerage and insurance stocks amid hopes for deregulation and stable quarterly earnings.
Better-than-expected factory output data caused the market to gain further ground in the afternoon, as it underscored expectations for a pick-up in private consumption and corporate spending in the second half of this year. But foreign investors remained net sellers, after already unloading more than a net 3.3 trillion won ($3.56 billion) of local shares in June.
The benchmark Korea Composite Stock Price Index closed up 1.08 percent at 1,751.75 points, marking its biggest one-day gain in 10 days.
"It looks like the correction has run to some extent," said Park Hyoung Ryol, a fund manager at Consus Asset Management Co Ltd "But the correction wasn't deep enough, and it is likely to go on until next week."
The local stock market had been in a slump since reaching a record high last week, hit by government officials' warnings against heavy stock trading on borrowed money and falls in overseas stock markets.
In response, 14 domestic brokerages, including Samsung Securities and Daewoo Securities, said in a joint statement on Thursday they will reduce lending to stock investors or cut the list of stocks available for margin trading.
Shares of securities firms rose as retail investors recovered from the panic triggered by government officials' warnings against margin trading.
Shares in Samsung Securities leapt 6.1 percent to 74,800 won.
Turnover has been on the decline since securities companies started scaling back lending to investors.
A total of 280 million shares changed hands valued at 4.6 trillion won, compared with 303 million shares worth 5.2 trillion won on Wednesday. But analysts said brokerage issues could rise further due to stable earnings and high hopes for the pending Capital Markets Integration Act, which benefits securities houses.
Shares in flat-screen maker LG.Philips LCD trimmed gains on foreign selling but it still closed 1.36 percent higher at 41,000 won.
In contrast, Samsung Card Co Ltd, which had a sparkling debut on Wednesday with a 28 percent surge, turned 5.23 percent lower to close at 58,000 won, on the view that the stock reached its short-term fair value. Advancers led decliners by 576 to 198.
The September KOSPI 200 futures index added 2.70 points to 223.90, while the underlying KOSPI 200 spot index rose 2.25 points to 222.60. The junior Kosdaq gained 2.30 percent to 778.50 points.