(Updates to mid-morning)
SEOUL, April 8 (Reuters) - Seoul stocks were down 1 percent
by midmorning on Tuesday, led by technology titles whose recent
gains on a solid earnings outlook were undermined after a major
U.S. technology firm gave a disappointing revenue estimate.
Chipmakers such as Samsung Electronics (005930.KS) fell after
Advanced Micro Devices Inc (AMD.N), the world's second largest
maker of computer processors, made a first quarter revenue
estimate below market expectations, citing the weak economy and
adding it will cut its workforce by 10 percent. [ID:nN07293732]
Samsung fell 1.69 percent to 639,000 won, drawing little
support from news smaller rival Hynix Semiconductor Inc
(000660.KS) had raised its computer memory chip contract price
slightly for the first half of April.
Hynix shares were caught up in the overall market decline,
losing 1.64 percent to 27,000 won, despite news that the EU had
decided to lift duties on imports of dynamic random access memory
(DRAM) chips, its flagship product. [nSEO134726]
The Korea Composite Stock Price Index was down 0.97 percent
to 1,756.19 points as of 0203 GMT, breaking a string of four
consecutive gains.
Foreigners and institutional investors fuelled the downward
momentum, with foreigners selling a net 6.7 billion won worth of
shares and local institutions discarding a net 113.8 billion won
worth by 0153 GMT.
"Chipmakers have gained a lot recently on expectations that
the memory chip market has bottomed out and will likely get
better in the latter part of this year," said Kim Joon-kie, an
analyst at SK Securities.
"However the news of an earnings downgrade and job cuts by a
major U.S. technology firm disappointed investors and dampened
their appetite for shares in the technology sector," he added.
Steelmakers fell on the back of commodities price hikes, with
POSCO 05490.KS down for a second day after it confirmed on
Monday that it has agreed to a sharp price raise with an
Australian coal supplier.
POSCO fell 2.91 percent to 500,000 won.
Other steelmakers such as Hyundai Steel (004020.KS) and
Dongbu Steel (016380.KS) also declined on expectations that other
coal suppliers may follow the suit in raising their prices,
pressuring the firms' profit margins.
Hyundai Steel fell 1.22 percent to 72,800 won and Dongbu fell
2.07 percent to 11,800 won.
Carmakers also fell on the back of gains in raw materials and
oil, with Hyundai Motor (005380.KS) down 1.79 percent to 76,600
won and Kia Motors (000270.KS) down 2.27 percent to 10,750 won.
"Carmakers had risen largely on the currency factor, but we
have been seeing the local won currency edging up recently," said
Bar Sung-young, a market analyst at Hyundai Securities.
"Added to that steelmakers are expected to raise their steel
prices and other raw materials needed in manufacturing cars are
rising, putting pressure on the shares," he added.
Some financials such as Kookmin Bank 060000.KS rose after a
report that Washington Mutual Inc (WM.N), the largest U.S.
savings and loan company, is close to obtaining a $5 billion
injection from investors led by a private equity firm, lifting
Wall Street financials. [ID:nN07475686]
Kookmin rose 0.98 percent to 62,100 won and Hana Financial
Group (086790.KS) gained 1.69 percent 45,250 won.
(Reporting by Park Jung-youn; Editing by Keiron Henderson)
