(Updates to mid-morning)
SEOUL, Jan 21 (Reuters) - Seoul stocks fell 1.4 percent on
Monday, with exporters such as Hyundai Motor extending declines
on worries the U.S. economy, South Korea's No.2 export market,
may tip into recession despite efforts to boost the economy.
But Halla Engineering & Construction (014790.KS) jumped 4.11
percent to 31,650 won after announcing it has agreed to buy a 73
percent stake in car parts maker Mando Corp for 650 billion won
($689.7 million). [ID:nSEO204864]
Chip makers led by Hynix Semiconductor also outperformed, as
computer memory chip prices appear to be rebounding on growing
signs that second-tier companies are moving to cut back
production.
"The local market's rise on Friday was largely spurred by
expectations of Bush's economic package, but Wall Street reacted
coolly to the measures, helping drag down Seoul stocks," said Lee
Sun-yeop, an analyst at Goodmorning Shinhan Securities.
"Technology shares, heavily dependent on the U.S. economy and
China-related stocks such as shipbuilders will likely continue to
be pressured by global credit troubles."
The Korea Composite Stock Price Index fell 1.42 percent to
1,710.63 points as of 0129 GMT, after two straight sessions of
gains.
Exporters and shipbuilders, sensitive to the health of the
global economy, took the brunt of the selling after Wall Street
stumbled, with President George W. Bush's measures to lift the
economy out of doldrums failing to impress investors.
Hyundai Motor Co (005380.KS), South Korea's top auto maker,
eased 1.06 percent to 65,100 won and second-ranked Kia Motors
Corp (000270.KS) lost 1.91 percent to 9,240 won.
LG.Philips LCD Co Ltd (034220.KS), the world's second-largest
maker of large-size LCD screens, fell 1.28 percent to 42,300 won.
Hyundai Heavy Industries Co Ltd (009540.KS), the world's top
shipbuilder, fell 3.38 percent to 343,500 won, while
second-ranked Samsung Heavy Industries (010140.KS) slumped 5.81
percent to 30,850 won.
But Hynix Semiconductor Inc (000660.KS), the world's No.2
maker of memory chips, added 2.65 percent to 25,150 won as
expectations grew that an oversupply in the embattled memory chip
market would ease.
Analysts said that news of a temporary cutback of chip
manufacturing by Taiwan chip maker ProMOS signals that
manufacturers would move to rein in output to alleviate a
persistent oversupply.
Bigger rival Samsung Electronics Co Ltd (005930.KS) was down
0.53 percent at 564,000 won, also outperforming the broader
market.
(Reporting by Kim Soyoung; Editing by Sei Chong)
