Seoul shares seen lower on euro zone worries, firmer won

Mon Feb 4, 2013 6:45pm EST

SEOUL, Feb 5 (Reuters) - Seoul shares are expected to slip
on Tuesday, extending losses into a fourth day, after U.S. and
European stocks dropped on renewed worries about the euro zone,
while a stronger won is likely to pressure exporters.
    "The KOSPI is likely to be under downward pressure given the
correction in global equities, although it is unlikely to fall
by much as it is nearing the 1,930-mark, which is seen as its
bottom," said Lee Jae-man, an analyst at Tongyang Securities.
    U.S. stocks slid on Monday, giving the S&P 500 its worst day
since November, as worries about political uncertainty in Spain
and Italy caused markets to pull back from recent gains.
 
    Exporters are expected to come under pressure after the
South Korean won posted its biggest daily gain since
December 2011 on Monday. A stronger won erodes their overseas
earnings when repatriated and hurts their sales competitiveness.
 
    The Korea Composite Stock Price Index (KOSPI) 
slipped 0.2 percent to 1,953.21 points on Monday, falling for a
third session and taking the index back towards a one-month low
hit on Jan. 28.
        
------------------MARKET SNAPSHOT @ 22:28 GMT-------------------
 
 INSTRUMENT    LAST    PCT CHG   NET CHG    
S&P 500               1,495.71    -1.15%   -17.460    
USD/JPY                  92.24    -0.13%    -0.120    
10-YR US TSY YLD    1.957      --      -0.068    
SPOT GOLD            $1,673.95     0.00%    -0.050    
US CRUDE                $96.15    -1.66%    -1.620    
DOW JONES             13880.08    -0.93%   -129.71    
ASIA ADRS              135.66    -0.94%     -1.28    
------------------------------------------------------------->S&
P 500 posts worst day since Nov                  
>Bonds up as stock loss,euro zone concern revive bid 
>Euro sink as political worries renew debt concerns 
>Oil prices sink on profit-taking                   
    
---STOCKS TO WATCH---
    ** DOOSAN ENGINEERING & CONSTRUCTION, DOOSAN
HEAVY INDUSTRIES AND CONSTRUCTION **
    Doosan Engineering & Construction said on Monday that it
planned to offer new shares worth 1 trillion won ($921.9
million), of which 571.6 billion won would be reserved for its
biggest shareholder, Doosan Heavy Industries and Construction.
 
    Several local brokerages lowered their target price for
Doosan Heavy on Tuesday, citing the financial burden of aiding
its affiliate.       
($1 = 1084.6750 Korean won)

 (Reporting By Somang Yang; Editing by Chris Gallagher)
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.