Seoul shares close higher on foreign program buying led by Samsung Electronics

SEOUL (AFX-ASIA) - Share prices closed sharply higher led by Samsung Electronics and brokerages on late program buying by foreign investors as NASDAQ futures picked up, dealers said.	    After a firmer opening on NASDAQ's gains on Friday as the latest employment data added to expectations of further U.S. rate cuts, the index weakened before mounting a test of 600 points, which provides strong resistance.	    The composite index closed up 10.90 points, or 1.86 pct at 596.50, off a high of 599.05.	    Volume was 468 mln shares worth 2.1 trln won.	    Gainers outnumbered losers 517 to 260, with 79 stocks unchanged.	    A total of 23 stocks closed limit-up and 2 limit-down.	    The large-cap index closed up 9.85 points at 466.67, the mid-cap index rose 5.86 points to 810.93 and the small-cap index gained 13.44 points to 1,202.17. 	    Foreign investors were net sellers of shares worth 19 bln won, institutional investors were net buyers of shares worth 28.7 bln and retail investors were net sellers of shares worth 15.9 bln.	    The KOSPI 200 was up 1.35 points at 74.86 and the June futures contract was up 1.25 at 74.80.	    The benchmark three-year state bond yield was up 0.01 percentage points at 6.46 pct and the three-year corporate bond was also up 0.01 at 7.80 pct.	    The won was quoted at 1,300.80 to the dollar, down from Friday's close of 1,298.20.	    Shinyoung Securities analyst Kim In-soo said the market made a strong start after reports that General Motors may submit a purchase proposal on Daewoo Motor shortly and on a more positive view of the rescue package for Hyundai Hynix.	    The market then extended gains in late trade as foreign investors turned net buyers in the futures following firmer NASDAQ futures, Kim said.	    Retail interest focused on brokerage stocks on expectations that Hyundai Securities and Daewoo Securities may be close to deals with foreign partners, he said.	    Brokerages also got a boost from hopes that further U.S. rate cuts will underpin equity markets, he said. 	    "Despite recent steep gains, sentiment remains firm and the index is expected to breach 600 points soon," Kim added.	    Samsung Electronics closed up 7,000 won at 230,000 and SK Telecom gained 1,000 to 235,500.	    Korea Telecom finished up 100 at 63,000 after it reported a first quarter net profit of 337.9 bln won on sales of 2.87 trln won.	    Hyundai Hynix was up 190 at 3,655 on volume of 82 mln shares, Hyundai Motor was up 200 at 22,300 while Hyundai Engineering dropped 5 to 600 on 2.5 mln shares.	    Kia Motors fell 120 to 9,230 after it reported a first quarter net profit of 115.5 bln won on sales of 2.86 trln won, up from 53.1 bln and 2.4 trln won a year ago.	    Analysts said that the results were good but already priced into the stock, while the company's future earnings could be significantly impacted by a GM/Daewoo deal.	    Daewoo Shipbuilding & Marine Engineering closed up 100 at 6,230 on 2.8 mln shares after it said it won 1.0 bln usd in orders to build 11 vessels.	    Hyundai Heavy gained 50 to 27,350 but Samsung Heavy Industries finished down 40 at 5,350 on 2.2 mln shares as investors switched out of the stock on the Daewoo Shipbuilding news, dealers said.	    Daewoo Motor Sales was limit-up 350 to 2,700 after news that GM may propose to buy the company and Daewoo Motor's Kunsan plant soon.	    Daewoo Securities was limit-up 1,350 to 10,550 on 11.1 mln shares and Hyundai Securities limit-up 1,110 at 8,560 on 9.0 mln shares.	    Good Morning Securities added 340 at 6,340 on 18 mln shares and Samsung securities was up 1,950 at 37,950 on 1.3 mln shares	    KEPCO was up 350 at 23,650 and POSCO rose 1,100 at 101,000. 

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