Seoul stocks rise on chipmaker shareholder return plans

SEOUL, Aug. 21 (Yonhap) -- Seoul stocks ended higher on Friday as investors pin hopes on large-scale shareholder return schemes from the country's top two chipmakers -- Samsung Electronics and SK hynix. The Korean won rose against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) closed up 60.37 points, or 0.88 percent, to 6,912.95, after rising as high as 6,954.12.

Trade volume was moderate at 404.5 million shares worth 28.7 trillion won (US$20.7 billion). Losers far outnumbered winners 681 to 193.

Retail and foreign investors were net sellers, offloading a combined 1.34 trillion won. Institutional investors, on the other hand, snapped up 248.1 billion won.

"Local stocks were boosted by shareholder return plans by SK hynix and Samsung Electronics, which overshadowed external uncertainties," Daishin Securities analyst Lee Kyoung-min said.

SK hynix announced Wednesday a plan to repurchase some 40 trillion won worth of common shares as part of a shareholder return plan.

Top cap Samsung Electronics is also expected to announce a shareholder return scheme worth up to 110 trillion won later in the day.

But further advance was limited due to external uncertainties as the U.S. Treasury Department's surprise bond buyback failed to quell lingering concerns about inflation and government debts, and pushed bond yields upward.

Large-cap shares closed mixed.

Market bellwether Samsung Electronics rose 3.87 percent to 281,500 won, while industry rival SK hynix added 2.31 percent to 1,730,000 won.

Financial shares gathered ground as investors went bargain hunting.

Industry leader KB Financial increased 2.69 percent to 164,300 won, while Shinhan Financial Holdings rose 2.97 percent to 104,100 won.

Among the decliners were defense and shipbuilders, weighed on by profit-taking.

Defense giant Hanwha Aerospace declined 7.03 percent to 1,085,000 won, and shipbuilder HD Hyundai Heavy Industries shed 4.73 percent to 453,000 won.

Shares of Kakao also fell by a sharp 7.49 percent to 35,800 won, following the announcement to spinoff its chat-app based platform business.

The Korean won was quoted at 1,386.5 won against the U.S. dollar as of 3:30 p.m., up 6.1 won from the previous session.

Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys added 4.3 basis points to 3.854 percent, and the return on the benchmark five-year government bonds advanced 4.5 basis points to 4.111 percent.