* KOSPI up 0.10 pct
* Steelmakers rise after news on deal with Brazilian miner
* Some builders gain after report of large Saudi order
(Updates to mid-morning)
By Jungyoun Park
SEOUL, June 11 (Reuters) - Seoul shares were flat in volatile
early trade on Thursday, as investors eyed an upcoming interest
rate decision by the South Korean central bank and futures
markets ahead of their expiry.
The Korea Composite Stock Price Index (KOSPI) was up
0.10 percent at 1,416.34 points as of 0019 GMT, continuing to
move in and out of positive territory.
"Shares are down a bit after yesterday's big gains, and
investors are acting more cautiously ahead of the central bank's
interest rate decision and futures and options expiry," said Lee
Kyoung-su, a market analyst at Tauraus Investment & Securities.
The central bank will probably keep interest rates on hold
again on Thursday, a Reuters poll shows, as Asia's fourth-largest
economy has quickly stabilised but faces a tough road to full
recovery. [ID:nSEO334074]
"Eyes will be on comments from the central bank, and futures
trading trends will also be closely monitored. Volatility is
expected throughout the session," Lee added.
Shares in steelmakers rose after news Brazilian mining giant
Vale (VALE5.SA) agreed on Wednesday to cut 2009 iron ore prices
by as much as 48.3 percent with Japanese and South Korean
steelmakers. [ID:nSPG002369]
POSCO (005490.KS), the world's No.4 steelmaker, was up 1.34
percent and Dongbu Steel (016380.KS) rose 6.3 percent.
A local media report that major South Korean builders
including Samsung Engineering (028050.KS), Daelim Industrial
(000210.KS) and SK Engineering & Construction had won a refinery
project worth $2.6 billion from Saudi Arabia sent them higher.
Shares in Daelim Industrial advanced 3.28 percent and Samsung
Engineering was up 0.11 percent.
A continued hike in crude prices CLc1 weighed on
transporters, sending Korean Air Line (003490.KS) down 0.81
percent. Asiana Airlines (020560.KS) shed 1.02 percent.
(Editing by Jonathan Hopfner)
