S.Korea stocks set to snap 4-day rise on profit-taking, won pressured

Wed Jul 30, 2014 11:28pm EDT

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* KOSPI slips on profit-taking, Samsung Electronics earnings
    * Won pressured by broad dollar strength after U.S. Q2 GDP

    By Christine Kim
    SEOUL, July 31 (Reuters) - South Korean shares are poised to
snap a four-day rally on Thursday as investors took profit early
in the session, while the Korean won also fell on broad
dollar strength stemming from stronger-than-expected U.S.
second-quarter growth.
    The Korea Composite Stock Price Index (KOSPI) was
down half a percent at 2,072.59 points as of 0311 GMT.
    The local currency was quoted at 1,025.8 against
the dollar, down 0.2 percent from Wednesday's onshore trade at
1,024.3.
    "The won may weaken considerably on the U.S. data...but
foreigners' won demand linked to share purchases, stable local
fundamentals and exporters' dollar sales will keep losses capped
around 1,030," said Son Eun-jeong, a foreign exchange analyst at
Woori Futures in Seoul.
    U.S. April-June gross domestic product grew at a 4.0 percent
annualised rate as activity picked up broadly, surpassing
expectations and strengthening the dollar. 
    Meanwhile, market heavyweight Samsung Electronics Co Ltd
 dragged down the local bourse, down more than 4
percent in early trade after it reported its worst quarterly
profit in two years and was downbeat about its second-half
prospects. 
    Shares of Naver Corp fell 4 percent as investors
fretted about the potential size of Line Corp's IPO and what it
would mean for shareholders in the parent company, despite
seeing its second-quarter net sales jump 56 percent on year.
Line is Naver's messaging app. 
    Foreign investors purchased a net 317.0 billion won ($309.00
million) worth of KOSPI shares near mid-session.
    Decliners far outnumbered advancers 542 to 274.  
    The KOSPI 200 benchmark of core stocks was down 0.6
percent, while the junior KOSDAQ fell 2 percent.
    September futures on three-year treasury bonds fell
0.05 points to trade at 106.94. 
    
                       0311 GMT    Prev close
 Dollar/won             1,025.8       1,024.3
 Yen/won             9.9796/854        9.9591
 *KTB futures            106.94        106.99
 KOSPI                 2,072.59      2,082.61
 * Front-month futures on three-year treasury bonds

 (Editing by Jacqueline Wong)
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