Seoul shares rise

Seoul shares rose 1.6 percent on Monday, rebounding from slight initial losses, powered by a rally in brokerages and shipbuilders, which outweighed concerns over high oil prices and the stronger won. Brokers led by Samsung Securities advanced on continuing investment fund inflows and as selling triggered by tighter rules on stock trading on credit receded, dealers said.
However, investors are likely to turn increasingly cautious ahead of the second-quarter earnings season and lingering concerns over monetary tightening in China, analysts said.
"Brokerages led today's market as funds continued to flow in recently," said Kim Seong-joo, an analyst at Daewoo Securities. "But the strength is unlikely to last. In fact the market could turn pretty volatile this month if upcoming earnings fail to meet investor expectations." The benchmark Korea Composite Stock Price Index ended 1.59 percent higher at 1,771.35 points.
The KOSPI had briefly extended gains after data showed South Korean exports grew more than expected in June and the trade surplus hit a record high. June inflation came below expectation. But expectations for possible rate increases in China and Japan could weigh on equity investors' sentiment, analysts added.
Samsung Securities rose 10.77 percent to end at 82,300 won and Daewoo Securities surged 12.63 percent to 32,100 won. A slew of lucrative orders boosted shares in South Korean shipbuilders, led by Samsung Heavy Industries Co, which jumped 5.09 percent to 47,500 won on $1.2 billion drillship orders won since Friday. Hyundai Mipo Dockyard rose 2.72 percent to 264,000 won.
Also among the outperformers was flat-screen maker LG.Philips LCD, which rose 3.16 percent to 42,400 won on hopes of better second-quarter results. But LG Electronics Inc fell 1.83 percent to 75,000 won, after the world's No 2 plasma display panel (PDP) maker said on Sunday it would increase its PDP output by 22 percent. Top domestic mobile operator SK Telecom Co shed 1.88 percent to 209,000 won after it pledged to inject up to $100 million more into its loss-making US mobile venture Helio.
Shares in KT&G, South Korea's top tobacco company, rose 3.54 percent to close at 67,300 won after shareholder Franklin Mutual Advisers said it could exercise shareholder rights to improve KT&G's corporate governance. Foreign investors sold a net 104.3 billion won ($113.1 million) on the main board while local institutions bought a net 197.7 billion won worth. Retail investors sold a net 133.6 billion won worth of shares.
Trading volume reached 297 million shares worth 4.5 trillion won, compared with Friday's 278 million shares worth 5.3 trillion won. Advancers led decliners by 526 to 231, with 78 ending flat. The September KOSPI 200 futures index rose 4.25 points to 226.05, while the underlying KOSPI 200 spot index climbed 3.44 points to 224.75.
In the junior Kosdaq market, mobile chip company Advanced Digital Chips Inc tumbled by the daily limit of 15 percent after a proposed $66 million investment by SK Telecom fell through. But Neowiz Games Corp shot up in the first day of the company's market debut, ending at 126,500 won against its initial price of 110,000 won. The junior Kosdaq rose 0.76 percent to close at 784.61 points.