* KOSPI retreats in volatile trade
* Samsung Elec falls despite strong Q1 results, Hynix gains
* Kia Motors down after earnings
(Updates to mid-morning)
By Jungyoun Park
SEOUL, April 24 (Reuters) - Seoul shares retreated in
volatile trade on Friday, with losses by Samsung Elec (005930.KS)
despite its strong results weighing on the index but gains by KT
(030200.KS) after quarterly earnings lending support.
Samsung Electronics shed 3.67 percent as of 0221 GMT despite
posting a 619 billion won ($458.1 million) net profit for the
first quarter, substantially more than the market consensus. But
its operating profit came slightly below market estimates.
[ID:nSEO253240]
Shares in the world's No.1 memory chip maker had gained 39
percent so far this year as of Thursday's closing compared with
the main KOSPI's 22 percent rise.
Samsung Elec said its non-operating income rose mainly on
contributions from its units and affiliates.
"One of the key risks [for Samsung Elec] would be the
won/U.S. dollar exchange rate. In the first quarter, relative
weakness in the won KRW= helped, but that may not be the case
from the second quarter on. Also, a drastic pickup in global
demand for memory chips is not likely in the near future," said
Jeong Eui-suck, a research director at Goodmorning Shinhan
Securities.
The Korea Composite Stock Price Index (KOSPI) was down 0.32
percent at 1,364.38.
"Investors have turned more cautious as the results by
Samsung Elec, while very good, did not top the wild expectations
circulating in markets yesterday," said Lee Sun-yeop, a market
analyst at Goormorning Shinhan Securities, adding that there was
speculation Samsung would post a quarterly net profit of as much
as 700 billion won.
"Now that key South Korean corporate results are out,
investors are looking for other sources of upward momentum," Lee
added.
Shares in Hynix Semiconductor (000660.KS), which also posted
quarterly results on Friday, traded flat.
The world's No. 2 memory chip maker reported its sixth
straight quarterly loss but predicted better days ahead as chip
prices recover.[ID:nSEO218573]
"Yes, Hynix saw losses, but they came in line with our
expectations," said Suh Do-won, an analyst at Hanwha Securities.
Kia Motors (000270.KS) fell 1.87 percent despite quarterly
earnings figures that beat market estimates, following a recent
rally. [ID:nSEL000576]
Shares in Kia Motors had gained 12.5 percent as of Thursday's
closing from a week ago, compared with the broader market's 2.9
percent gain.
Gains in KT Corp and KTF 032390.KS after they posted solid
results lent the market support.
KT, the country's top fixed-line and broadband firm, was up
1.94 percent after posting a 15.4 percent rise in its
first-quarter operating profit as a market race eased, while KTF,
the nation's No.2 wireless carrier, was up 2.34 percent after
reporting a net profit that jumped six-fold from a year earlier.
[ID:nSEO226883]
Separately, reaction to the Bank of Korea's estimates that
South Korea's economy averted falling into a recession in the
first quarter by growing a seasonally adjusted 0.1 percent over
the previous quarter was muted, as the data was in line with
expectations. [ID:nSEO295868]
"I would not say the recovery is immediately ahead. We are
just seeing the slowdown decelerating, and given the previous
quarter's steep falls, a 0.1 pct rise is rather modest," said
Helen Hwang, an economist at Woori Investment & Securities.
(Editing by Jonathan Hopfner)
