* KOSPI edges down 0.27 pct
* Defence issues rise on N.Korea report
* Shinhan higher after better-than-expected Q2 results
(Updates to mid-morning)
By Jungyoun Park
SEOUL, July 30 (Reuters) - Seoul shares fell slightly on
Thursday after losses overnight on Wall Street and a report a
South Korean fishing boat was being held by North Korea, but
shipbuilders advanced on overseas order hopes.
The Korea Composite Stock Price Index (KOSPI) was
down 0.27 percent at 1,520.13 points as of 0100 GMT.
"Falls in both U.S. and Chinese markets are weighing on Seoul
shares, particularly as they've been rising for an extended
period," said Park Suk-hyun, a market analyst at KTB Securities.
Analysts said reports a South Korean fishing boat had been
towed by a North Korean patrol ship early Thursday morning had
little visible impact on Seoul stock markets. [ID:nSEO355911]
"The markets hardly reacted when the North conducted nuclear
tests. I do not think South Korea's country risk will be
heightened further unless we see more drastic action, such as
military clash," Park added.
But shares in defence issues rallied.
Shares in Huneed Technology (005870.KS), a manufacturer of
military wireless communications equipment, rose 3.27 percent and
Victek (065450.KQ), a defence parts supplier, advanced 4.55
percent.
Shares in Shinhan Financial Group (055550.KS) rose 0.13
percent after it reported on Wednesday a narrower-than-expected
decrease in quarterly profit with a modest interest margin
contraction. [ID:nSEO194317]
JPMorgan on Thursday raised its target price for Shinhan by
14 percent to 50,000 won ($40.2) and its net profit estimate for
to 1.4 trillion won from 1.1 trillion won to reflect the
stronger-than-expected quarterly earnings.
Gains by shipbuilders lent support to markets, with hopes for
overseas orders lifted after Samsung Heavy Industries (010140.KS)
said on Wednesday that it had signed a contract to build floating
liquefied natural gas (LNG) storage facilities for Royal Dutch
Shell (RDSa.L) for the next five years, renewable for up to 15
years. [ID:nSEO264784]
Shares in Samsung Heavy were up 2.5 percent and Hyundai Heavy
Industries (009540.KS), the world's No.1 shipbuilder, climbed
1.69 percent.
(Editing by Jonathan Hopfner)
