* KOSPI trades firm, gains 0.30 pct
* Samsung Elec rallies on bullish Q2 forecasts
* Samsung Engineering up after order news
(Updates to mid-morning)
By Jungyoun Park
SEOUL, July 6 (Reuters) - Seoul shares turned higher in late
Monday morning trade, helped by gains in Samsung Electronics
(005930.KS), which rose after strong quarterly earnings
forecasts.
The Korea Composite Stock Price Index (KOSPI) was up
0.30 percent at 1,424.24 points as of 0146 GMT.
"Shares started off weak but Samsung Electronics' earnings
estimates boosted market sentiment, and brightened views on the
broader outlook ahead of earnings season," said Kim Seung-han, a
market analyst at HI Investment Securities.
Kim added that news of additional missile launches by North
Korea had a limited impact on markets.
"The response from the United States has not yet reached a
level that alarms investors yet."
Market gains were led by Samsung Electronics' 4.16 percent
rise after the world's largest maker of memory chips and flat
screen TVs said on Monday it expected to post a consolidated
operating profit of 2.2 trillion-2.6 trillion won ($1.74
billion-$2.05 billion) in the April-June quarter.[ID:nSEO324424]
Samsung Electronics is the largest share on the KOSPI,
accounting for 10 percent of the main index's market cap.
"The numbers came out stronger than the market had expected,
and this is probably due to robust sales in handsets...provided
that Samsung Electronics keeps up with this trend, its third
quarter earnings will come out even stronger, as its memory chip
unit will do much better then," said Kim Gee-soo, a market
analyst at Goodmorning Shinhan Securities.
Other key technology issues also advanced, with LG
Electronics (066570.KS), the world's No.3 handset maker, gaining
2.53 percent, and LG Display (034220.KS), the world's No.2 maker
of liquid crystal displays (LCD), climbing 0.89 percent.
Meanwhile shares in Samsung Engineering Co (028050.KS)
advanced 3.35 percent after the company said on Monday that it
secured a $2.6 billion refinery order from Algeria's state-owned
energy group Sonatrach.
But shares in POSCO (005490.KS) declined 0.46 percent,
pressured by negative brokerage notes.
JPMorgan said in a report dated July 5 it expects second
quarter earnings by the world's No.4 steelmaker to come out
"weak."
"We expect revenue of 6.3 trillion won...and operating profit
of 170 billion won," down 15 percent and 91 percent year-on-year,
respectively, it said.
(Editing by Jonathan Hopfner)
