KOSPI up 0.99 pct

* Memory chip issues up on chip price gain hopes

* LG Display rises on growing sectoral optimism

(Updates to mid-morning)

By Jungyoun Park

SEOUL, April 17 (Reuters) – Seoul shares rose on Friday after
overnight gains on Wall Street with techs such as Hynix
Semiconductor (000660.KS) leading gains, while banks rose helped
by better-than-expected earnings from JPMorgan (JPM.N).

The Korea Composite Stock Price Index (KOSPI) was up
0.99 percent at 1,350.02 as of 0209 GMT, heading for a sixth
straight weekly gain, which would be the longest weekly winning
streak since June, 2007.

“Although share movements are volatile and are having
difficulty sustaining a rise above the 1,350-point level, the
main index undoubtedly has upward momentum,” said So Jang-ho, a
market analyst at Samsung Securities.

“There are signs that shares have been rather overbought,
with average KOSPI-listed shares trading at a price-to-earnings
ratio of above 13, which is higher than regional markets,” So
added.

Gains were led by memory chip issues including Samsung
Electronics (005930.KS) and Hynix Semiconductor after spot prices
for key DRAM chips jumped, and following news a Taiwanese
counterpart was planning price hikes.

Spot prices for DRAM chips rose between 6 and 7 percent
overnight, according to DRAMeXchange.

Nanya Technology (2408.TW), Taiwan’s No.2 DRAM maker, is in
talks with clients to raise the contract price of its chips by 10
percent later this month, the company said on Thursday.
[ID:nTP253476]

Hyundai Securities raised its target price on Hynix by 18.8
percent to 19,000 won from the previous 16,000 won, citing likely
gains in DRAM and NAND flash chip contract prices.

Samsung Elec (005930.KS) was up 3.1 percent, while Hynix
(000660.KS) rose 8.68 percent.

Shares in LG Display Co Ltd (034220.KS) had gained
3.69 percent on growing optimism after the company’s earnings
announcement that the first quarter had marked the flat-panel
industry’s bottom. [ID:nSEO214111]

Banks and brokerages advanced as news of
stronger-than-expected quarterly earnings from JPMorgan (JPM.N)
boosted sentiment towards Seoul financials.

Woori Finance Holdings (053000.KS) rose 1.3 percent and KB
Financial Group (105560.KS) was up 2.43 percent.

Elsewhere, STX Group shares outperformed after the company on
Friday said STX Europe, formerly Aker Yards, had won a 750
million Norwegian crown ($112.3 million) order for three
icebreaker tug vessels from Kazakhstan ship owner JSC Circle
Marine Invest. [ID:nSEO309030]

STX Shipbuilding (067250.KS) was up 2.07 percent and STX Corp
(011810.KS) were up 1.52 percent.

(Editing by Chris Lewis)