Seoul shares rise

Seoul shares rose on Monday as techs including Samsung Electronics rebounded from recent losses and transporters like Korean Air Line rallied following news of al Qaeda leader Osama bin Laden's death. The Korea Composite Stock Price Index finished up 1.67 percent at 2,228.96 points. The KOSPI 200 June futures rose 5.6 points to 296.50 and the KOSPI 200 spot index gained 4.96 points to 295.35.
The junior Kosdaq market ended up 1.13 percent at 516.76. "Technology issues' rebound, led by Samsung Electronics, gave the market significant support," said Park Jung-woo, a market analyst at SK Securities. Foreign investors were buyers of a net 194 billion won ($181.6 million) worth of stocks, purchasing shares for a ninth consecutive session.
Samsung Electronics jumped 4.4 percent, following recent falls that extended losses on the year to nearly 6 percent, compared with the KOSPI's near-7 percent gain as of Friday's close.
Samsung shares traded at 1.4 times book value compared with a five-year average price-to-book value ratio of 1.6, Starmine data showed. Its price earnings multiple is also comparatively low at 8.7, versus the five-year average of 10.9 and the KOSPI's around 10.
"Samsung Electronics' earnings will improve from here, and its shares are cheap. This is perfect combination of reasons to buy in the eyes of investors," said James Song, an analyst at HI Investment & Securities. Hynix Semiconductor, the world's No 2 memory chip maker, ended up 2.4 percent, helped further by a 0.5 percent gain in the US Philadelphia semiconductor index.
Airlines and tour issues rallied after news al Qaeda leader Osama bin Laden was killed in a firefight with US forces in Pakistan on Sunday. Korean Air Line spiked 6.6 percent and Asiana Airlines jumped 11.5 percent. "Osama bin Laden's death fuelled hopes of greater stability in the Middle East, which could in turn stabilise oil prices," said Kim Seung-cheol, an analyst at Meritz Securities.
Tour issues also surged, with Hana Tour ending up 6.7 percent. Construction issues climbed after South Korea unveiled on Sunday measures aimed at helping financially pressed builders as a persistent slump in the sector emerged as the weakest spot in Asia's fourth-largest economy. Hyundai Engineering & Construction was up 1.1 percent and Daewoo Engineering & Construction rose 2.2 percent. Shares in KOGAS jumped 7.2 percent after South Korea's Ministry of Knowledge Economy said on Monday city gas tariffs would be hiked by 4.8 percent from May.