By Choi Kyong-ae
Staff Reporter

Seoul stocks closed higher across the board as foreign investors became active buyers of Samsung Electronics and other large-capitalization stocks, sending the benchmark index to the highest level in five years and six months, dealers said.

After opening higher on Wall Street’s gains on Friday, the market extended steep advances throughout the session, with sentiment buoyed by the news that North Korea has agreed to return to the six-way talks designed to disarm the Communist state’s nuclear weapons program later this week.

The Korea Composite Stock Price Index closed up 18.48 points, or 1.8 percent, at 1,040.43. It is the highest closing level since Jan. 4, 2000, when it closed at 1,059.04. The tech-heavy Kosdaq index also closed up 7.44 points, or 1.4 percent, at 526.10.

Softer oil prices following the terror attacks in London and positive U.S. employment data set the ground for foreign investors to become active buyers of local stocks. The terror attacks in London did not have any substantial negative impact on the market as investors bet that they are unlikely to spread to other cities and nations.

Samsung Electronics was among the strongest performers ahead of the release of its quarterly results on July 15.

``Tech stocks led the market’s rally. Expectations of stronger corporate results in the second quarter underlie the market’s strength,’’ Hyundai Securities analyst Rhoo Yong-seok said.

Analysts said foreign investors are cumulating Samsung Electronics on expectations that its third quarter results are likely to meet analysts’ expectations.

At the same time, the won’s recent fall against the dollar raised hopes that exports-oriented stocks will benefit from the won’s depreciation. A weaker won boosts exports earnings in won terms.

Samsung Electronics closed up 3.29 percent at 533,000 won, and Hynix Semiconductor ended up 10.6 percent at 20,850 won. POSCO closed up 2.7 percent at 192,000.

Banks and brokers also attracted strong buying interest. Kookmin Bank rose 2.1 percent to 48,200 won, and Samsung Securities added 2.7 percent to 28,450 won.