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Wednesday August 8, 9:48 AMSeoul shares up; Hyundai units jump on summit newsSEOUL, Aug 8 (Reuters) - Seoul shares rose 1.1 percent on Wednesday as firms in projects with North Korea such as Hyundai Marine surged on news of an inter-Korean summit, while the Federal Reserve's positive view of the U.S. economy lifted exporters.The leaders of the divided Koreas will hold a summit on Aug. 28-30 in the North Korean capital Pyongyang, only the second summit between the two countries that are still technically at war, both confirmed on Wednesday. [ID:nSEO91540] Shares in Hyundai Merchant Marine , operator of tour packages to the North, soared 9 percent to 51,200 won. Hyundai Engineering & Construction , involved in building projects in the Kaesong industrial complex just inside the North, rose 3 percent to 81,700 won. "The summit is apparently positive to certain companies engaged in economic cooperation projects with North Korea, but overall market-wise, there are doubts over what the current administration could do with the election just months away," said Rho Y.S., a market strategist at Hyundai Securities. "Unless substantial agreements come out of the talks, any impact on the market will be minimal. What is grabbing investor attention right now is how the recent credit squeeze will develop." The benchmark Korea Composite Stock Price (KOSPI)) rose 1.05 percent to 1,879.13 points as of 0126 GMT. The main index had fallen 7.7 percent as of Tuesday since hitting a record 2,015.48 on July 26, hit by worries that a U.S. subprime mortgage crisis would limit the availability of credit and leave some funds exposed to soured investments. Affiliates of Hyundai Group rallied across the board, with Hyundai Corp. jumping 6.25 percent to 33,150 won and Hyundai Elevator surging 12.24 percent to 165,000 won. Shares in Korea Electric Power Corp. rose 2.77 percent to 42,650 won on hopes improved relations between the two Koreas would speed up power development projects in the reclusive state. Exporters gained after the Federal Reserve held U.S. interest rates steady and said despite tightening credit conditions it believed the economy was sound, easing worries about a credit crunch in South Korea's second-biggest export market. [ID:nN07214742] Samsung Electronics was up 1.03 percent at 590,000 won, and LG.Philips LCD Co. Ltd. advanced 1.03 percent to 43,950 won. Daewoo Engineering & Construction , South Korea's most profitable builder, rose 1.3 percent to 27,250 won a day after raising forecasts for 2007 orders on strong demand for energy plants in an interview with Reuters. [ID:nSEO330332] But Korean Air Co. dipped 2.1 percent to 69,800 won after oil prices rebounded on Wednesday from sharp losses. |
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