(LEAD) Seoul shares snap 2-day fall on large cap gains

South Korean shares closed sharply higher Friday, ending a two-day losing streak on large cap gains led by financial firms and shipbuilding companies. The local currency fell slightly against the U.S. dollar. The benchmark Korea Composite Stock Price Index added 21.25 points, or 0.78 percent, to close at 2,731.90. Trading volume was moderate at 504.7 million shares worth 12.8 trillion won (US$9.24 billion), with gainers outnumbering losers 594 to 288. Institutions purchased a net 394 billion won worth of local shares, while retail investors net sold 367.7 billion won. Foreigners remained net sellers for a third consecutive session, dumping a net 48.3 billion won. The index had opened slightly higher, tracking overnight gains on Wall Street that followed reports of the U.S. expanding 2.8 percent from three months earlier in the second quarter, surpassing market expectations of a 2 percent on-quarter expansion. Most tech shares finished in positive terrain, with market kingpin Samsung Electronics advancin g 0.62 percent to 80,900 won, while its chipmaking rival SK hynix added 0.95 percent to 191,800 won. Shipbuilders were among gainers, with industry leader Samsung Heavy Industries spiking 8.40 percent to 11,870 won. "The profitability of shipbuilders will likely improve toward the end of the year as steel prices become more and more stabilized," Samsung Securities analyst Han Young-soo said. KB Financial surged 4.64 percent to 87,900 won, with Shinhan Financial soaring 6.42 percent to 58,000 won and Hana Financial adding 4.27 percent to 63,500 won. Leading chemicals producer LG Chem retreated 1.92 percent to 307,000 won, while top battery maker LG Energy Solution slipped 2.26 percent to 325,000 won, with its local rival Samsung SDS gaining 1.19 percent to 153,200 won. Auto giant Hyundai Motor tumbled 3.18 percent to 243,500 won, with its smaller affiliate Kia Motors dipping 2.52 percent to 112,100 won. Top battery maker LG Energy Solution slipped 2.26 percent to 325,000 won, while its local rival Samsun g SDS advanced 1.19 percent to 153,200 won. The local currency was trading at 1,385.80 won against the dollar as of 3:30 p.m., down 0.40 won from the previous session. Bond prices, which move inversely to yields, closed mixed. The yield on three-year Treasurys stayed flat at 3.024 percent, while the return on the benchmark five-year government bonds lost 1.4 basis points to 3.045 percent. Source: Yonhap News Agency