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Tech, Japanese stocks help local index recover

Jan 23,2007
Korea’s main bourse rebounded from Friday’s huge loss on the the strength of solid purchasing in tech shares. The benchmark Kospi gained 2.85 points, or 0.2 percent, to close at 1,363.41.
“After moving in a tight range, stocks gained some momentum due to rises in Asian equity markets including Japan,” said Kim Hak-gyun, an analyst at Korea Investment and Securities.
Japan’s main Nikkei 225 Stock Average rose 0.7 percent to 17,424.18, the highest close in nine months, boosted by weaker yen and expectations for improved corporate earnings.
Kospi’s blue chips were mixed, but tech shares enjoyed a strong day. Tech bellwether Samsung Electronics gained 1 percent to 591,000 won ($629) and Hynix Semiconductor, the world’s second-largest computer memory chipmaker, rose 2.2 percent.
Top steelmaker Posco added 1.8 percent on expectations that its shares have yet to benefit from consolidation moves in the global steel industry. But construction shares lost ground. No. 3 builder Hyundai Construction and Engineering fell 3.4 percent and fifth-largest industry player Daelim Industrial went down 2.2 percent.
No. 2 automaker Kia Motors fell 3.4 percent as analysts said the firm would post an operating loss for last year. The carmaker plans to report its earnings on Friday. It is also under investigation from the Fair Trade Commission for possible abuse of its market strength to control its sales agents.
Decliners beat advancers, 468 to 281. Volume was 185.8 million shares worth 2.3 trillion won.
The secondary Kosdaq extended its losing streak to five sessions, as it dropped 6.50 points, or 1.1 percent, to close at 577.12.
NHN dropped 2.6 percent, LG Telecom slipped 4 percent, and Asiana Airlines fell 1.4 percent.
Decliners beat advancers 534 to 372. Volume was 662.8 million shares worth 1.7 trillion won.

By Yoo Jee-ho Staff Writer [jeeho@joongang.co.kr]