Seoul shares seen recovering ground, but gains capped

SEOUL, Feb 6 (Reuters) - South Korean shares are likely to
rebound slightly from four days of losses on Wednesday, in line
with firmer global markets, but gains will be limited by
continued foreign selling.
"Seoul shares are very cheap right now so they appeal to
investors, but gains will be capped by the number of sell orders
that are coming on the market," said Kim Young-joon, an analyst
at SK Securities.
Some 9 trillion won ($8.5 billion) will leave the KOSPI by
July, following U.S. fund manager Vanguard group's decision to
switch from the MSCI index to the FTSE to track markets for its
$67 billion emerging market fund. FTSE does not classify South
Korea as an emerging market.
U.S. and global equities bounced back on Tuesday as
stronger-than-expected earnings and data from the United States
underlined hopes for a quickening recovery.
The Korea Composite Stock Price Index (KOSPI) fell
0.8 percent to 1,938.18 points on Monday, a two-month closing
low. The KOSPI has fallen 2.9 percent since the beginning of the
year.
------------------MARKET SNAPSHOT @ 22:28 GMT-------------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 1,511.29 1.04% 15.580
USD/JPY 93.67 0.06% 0.060
10-YR US TSY YLD 2.005 -- 0.049
SPOT GOLD $1,672.29 -0.02% -0.310
US CRUDE $96.68 0.04% 0.040
DOW JONES 13979.30 0.71% 99.22
ASIA ADRS 136.14 0.36% 0.48
---------------------------------------------------------------
>Wall St bounces back after sell-off; results help
>US bonds slip as investors flock to riskier assets
>Euro rallies vs dollar,yen as ECB meeting awaited
>Brent jumps,hits 20-week high on data, sentiment

---STOCKS TO WATCH---

**SK HOLDINGS **
The holding company of South Korea's third-largest
conglomerate said on Tuesday that it will pay out a dividend of
2,500 won per share.
The payout is worth 102 billion won ($93.8 million) at a
yield of 1.5 percent, higher than an estimated 1 percent,
according to Reuters data.
Shares in the holding firm have lost 2 percent since last
Thursday, when its chairman was jailed on embezzlement charges.

($1 = 1087.0500 Korean won)

(Reporting by Somang Yang; Editing by Richard Pullin)