* KOSPI loses 0.57 pct
* Key blue chips, defensive issues outperform
* Banks fall, under pressure from weaker won
(Updates to close)
By Jungyoun Park
SEOUL, June 17 (Reuters) - Seoul shares fell on Wednesday
with losses by banks including KB Financial Group (105560.KS)
weighing on the index, but key Seoul blue chips including Samsung
Electronics (005930.KS) outperformed.
The Korea Composite Stock Price Index (KOSPI) ended
down 7.98 points or 0.57 percent at 1,391.17.
"Foreign investors have turned into net sellers lately, and
programme selling is adding to the pressure. There is little
upward momentum at the index's current level," said Hyundai
Securities analyst Bae Sung-young.
Foreign investors were netsellers for a third consecutive
session, offloading a net 159.2 billion won ($126.4 million),
while retail investors bought a net 344 billion won.
"But retail investors are getting into the markets amid
current falls. The index will move within a boxed range around
1,400 points, but big losses are not likely either," Bae added.
Analysts said South Korea's key blue chips and defensive
issues were drawing more interest as their share prices tended to
be more stable.
Samsung Electronics, the world's No.1 memory chipmaker, rose
1.77 percent, while Hyundai Motor (005380.KS), South Korea's top
carmaker, surged 0.43 percent.
SK Telecom (017670.KS), South Korea's top mobile phone
operator, climbed 0.55 percent, while Hite Brewery (103150.KS),
South Korea's top brewer, gained 0.64 percent.
But banks retreated, pressured further by the weaker won
KRW=. KB Financial Group (105560.KS) fell 3.59 percent
following local media reports KB Real Estate Trust has been
picked as the preferred bidder for a building owned by the South
Korean unit of ING Group, after offering 400 billion won ($318.6
million).
Woori Finance Holdings (053000.KS) lost 2.86 percent.
Kia Motors (000270.KS) rallied 5.49 percent on hopes the
nation's No.2 carmaker would report better-than-expected earnings
for the April-June quarter, thanks to improving domestic sales.
"Kia's monthly sales for June are expected to be better than
those for May, which would help boost its quarterly earnings.
Domestic sales have shown firm growth recently," said SK
Securities analyst Kim Yong-soo.
Doosan Heavy Industries (034020.KS) finished up 0.81 percent
on brewing expectations for overseas plant orders.
Earlier this week, Doosan Heavy said it had won an order for
power plant parts from Iran worth about 120 billion won ($95.57
million).
"Expectations that Doosan Heavy will continue to win such
orders are ripe," said Goodmorning Shinhan Securities analyst Cho
In-karp.
Commodity-related issues fell after their latest gains, with
POSCO (005490.KS), the world's No.4 steelmaker, falling 1.28
percent, and Dongkuk Steel (001230.KS) retreating 3.13 percent.
($1=1259.6 Won)
