Seoul shares post solid gains

Seoul shares finished 1.1 percent higher on Thursday after volatile trade, lifted by rises in technology issues and shipyards, but gains may not be sustainable amid persistent doubts about the eurozone's stability, analysts said. "Frankly, there are not many rational explanations for the market's gains today except that they were fuelled by retail buying after yesterday's substantial falls," said Yang Kyeung-shik, a market analyst at Hana Daetoo Securities.
The external environment remained highly uncertain and a longer-term direction will depend largely on how debt solutions in Europe progress, analysts said. "Until we have clearer idea of where we are headed in Europe, small gains eked out on a daily basis will not mean much," Yang said.
The main KOSPI was seen moving between its 60 and 120-day moving averages of around 1,820 and 1,950 points in the short-term, analysts said. France and Germany, Europe's two central powers, clashed on Wednesday over whether the European Central Bank should intervene more forcefully to halt the eurozone's accelerating debt crisis after modest bond purchases failed to calm markets.
Retail investors were buyers of a net 264.4 billion won ($232.6 million) worth of stocks, purchasing shares for a third straight session, while foreign investors offloaded a net 344.7 billion won. The Korea Composite Stock Price Index finished up 1.11 percent at 1,876.67 points. The KOSPI 200 index ended up 1.08 percent at 244.60 points, while the junior Kosdaq market rose 1.8 percent to 506.54 points.
Hynix rallied 3.8 percent after Rambus lost a $4 billion antitrust lawsuit against Micron Technology and the world's No 2 memory chip maker. Hynix shares were rising on expectations of an unwinding of provisions set aside for the legal battle with Rambus, which could boost operating profits, said IBK Securities analyst Nam Tae-hyun. Other technology shares traded firm, with LG Electronics, the world's No 3 handset maker, rising 1.7 percent and LG Display, the world's No 2 flat panel maker, advancing 3.1 percent.