Seoul shares seen steady ahead of China PMI - pharma, biotech eyed

SEOUL, Nov 1 (Reuters) - Seoul shares are likely to hold
steady on Thursday as investors await factory performance data
from China, a major destination for South Korean exports.
Small cap stocks are likely to continue to attract buying
interest as blue chip shares lose momentum in the absence of
clear lead from U.S. markets.
"The index will trade within a narrow range, with little
clear pattern or movement in large caps. However, in the small
and medium caps, we will see pharma and biotech stocks
continuing to rise," said Lee Seon-yeob, an analyst at Shinhan
Securities.
The Korea Composite Stock Price Index (KOSPI) rose
by 0.66 percent to close at 1,912.06 points on Wednesday, a
third-session rise.

------------------MARKET SNAPSHOT @ 22:28 GMT-------------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 1,412.16 0.02% 0.220
USD/JPY 79.79 0.04% 0.030
10-YR US TSY YLD 1.695 -- 0.000
SPOT GOLD $1,719.19 -0.05% -0.860
US CRUDE $86.12 -0.14% -0.120
DOW JONES 13096.46 -0.08% -10.75
ASIA ADRS 119.71 -0.30% -0.36
-------------------------------------------------------------

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---STOCKS TO WATCH---

**KEPCO PLANT SERVICE AND ENGINEERING CO **
Kepco Plant Service and Engineering Co said on
Wednesday that it had won a contract to construct a diesel plant
in Jordan. The contract, valid until February 2039, is worth 1.1
trillion won ($917 million).

**LOTTE SHOPPING CO LTD **
Moody's downgraded Lotte Shopping on Wednesday, citing
concerns about the company's balance sheet following its
purchase of a 65.35 percent stake in Himart Co.

**SMALL-CAP PHARMACEUTICALS**
Eight small cap pharmaceutical firms rose near the daily
ceiling of 15 percent on Wednesday, following reports by local
media that Israel's Teva Pharmaceutical Industries,
the world's largest generics maker by market capitalisation, is
seeking to take over a Korean firm.
Korea United Pharm Inc, Yuyu Pharma Inc
and Kukje Pharma Ind Co Ltd are among
those seen as possible takeover targets.
($1 = 1090.6000 Korean won)

(Reporting By Somang Yang; Editing by Eric Meijer)