Seoul shares fall as Samsung Electronics, blue chips weigh

Thu Jun 14, 2012 10:41pm EDT

Related Topics

* Samsung Elec down 3 pct after power outage at LCD plant

* Hyundai Heavy falls after oil subsidiary drops IPO plan

* SK Hynix lower after Woori sells its $202 mln stake

By Joonhee Yu

SEOUL, June 15 (Reuters) - Seoul shares fell on Friday, underperforming Asian peers as the market nervously awaited a key weekend election in Greece that could decide its future in the euro zone. A 3 percent decline in index heavyweight Samsung Electronics added to the pressure.

The Korea Composite Stock Price Index (KOSPI) was down 0.76 percent at 1,857.35 points as of 0205 GMT, still poised for fourth consecutive weekly gain if the share average was to close at this level.

Samsung Electronics, which accounts for 17 percent of the KOSPI's total market capitalization, fell 3.1 percent after a 10 minute stoppage of its LCD production line due to a power outage.

"Whenever a component as large as Samsung moves, the whole index moves with it. But the broader market is still aimless as investors are wary about Greece," said Han Bum-ho, an analyst at Shinhan Investment & Securities.

Samsung, the world's largest producer of liquid crystal displays, declined to reveal any damage estimates from the disruption.

The market is also poised for a correction after investors bought shares in the cash market on Thursday after the expiry of some options, Han added.

Hyundai Heavy Industries, the world's biggest shipyard, shares fell 1.7 percent after refiner Hyundai Oilbank, in which it holds a 91.1 percent controlling stake, said it was dropping plans for a $2 billion initial public offering due to unfavorable financial market conditions.

SK Hynix fell 2 percent after the IFR reported that Woori Bank was selling a 1.4 percent stake in the world's second-largest memory chipmaker for $202 million.

The KOSPI 200 index of core stocks was down 0.88 percent, weighed down by the losses in key blue-chips to outpace declines seen in the broader market,

The junior, small-cap heavy KOSDAQ edged 0.25 percent lower.

While investors stood pat and are awaiting the results of the Greek election which could result in the country's disorderly exit from the euro zone, the market derived some comfort from plans of co-ordinated action by major central banks to stabilise the markets in such a scenario, ahead of a summit of G20 leaders next week. (Reporting by Joonhee Yu)

FILED UNDER: