Seoul shares to fall on U.S. fiscal worries, options expiry

Wed Nov 7, 2012 7:24pm EST

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SEOUL, Nov 8 (Reuters) - Seoul shares are likely to fall on
Thursday following a steep drop in Wall Street stocks on worries
over the U.S. fiscal situation, while the expiry of KOSPI
options contracts is seen adding to market volatility.
    "The U.S. fiscal cliff is a known issue but is still a
source of uncertainty in risk markets, as we saw with U.S.
stocks on Wednesday," said Rhyu Yong-suk, an analyst at Hyundai
Securities.
    "Coupled with the options expiry Thursday, volatility is a
concern and the main board is seen falling more than 1 percent."
    The Dow industrials lost more than 300 points in a sell-off
on Wednesday that drove all major U.S. stock indexes down over 2
percent in the wake of the presidential election as investors'
focus shifted to the looming "fiscal cliff" debate and Europe's
economic troubles. 
    South Korea's stock and foreign exchange markets will open
one hour later than usual on Thursday, at 10 a.m. (0100 GMT),
due to national college entrance examinations. 
    The Korea Composite Stock Price Index (KOSPI) closed
up 0.49 percent at 1,937.55 points on Wednesday, its highest
closing since Oct. 22.
    
--------------MARKET SNAPSHOT @ 22:46 GMT ---------------------
                 INSTRUMENT     LAST     PCT CHG      NET CHG
S&P 500              1,394.53      -2.37%      -33.860
USD/JPY                 79.94      -0.06%       -0.050
10-YR US TSY YLD   1.644        --         -0.107
SPOT GOLD           $1,715.95      -0.02%       -0.360
US CRUDE               $84.49       0.06%        0.050
DOW JONES            12932.73      -2.36%      -312.95
ASIA ADRS             119.77      -1.42%        -1.72
---------------------------------------------------------------
>Wall St sinks after election as 'fiscal cliff' eyed 
>Price up as Obama win drives monetary policy view  
>Dollar up after US vote, but fiscal worries abound 
>Oil down 4 pct, fiscal cliff looms with US vote    
 

---STOCKS TO WATCH--- 
    **E1 **
    E1 Corp, an liquefied petroleum gas (LPG) importer, said it
signed a deal with U.S. firm Enterprise Products Partners to
yearly import some 180,000 tonnes of LPG originating from shale
gas starting in 2014, the Chosun Ilbo newspaper and other media
reported. 

    **NHN **
    NHN Corp, the operator of South Korea's most popular search
portal Naver, reported on Thursday a third-quarter operating
profit of 156.6 billion won ($144.3 million), up 4.3 percent
from the third quarter of 2011 and up 4.7 percent from the
previous quarter.  
($1 = 1085.6000 Korean won)

 (Reporting by Joyce Lee; additional reporting by Ryan
Vlastelica; Editing by Chris Gallagher)
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