* KOSPI slips 0.75 pct
* Key bluechips, defensive issues outperform
* Banks fall, under pressure from weaker won
(Updates to mid-morning)
By Jungyoun Park
SEOUL, June 17 (Reuters) - Seoul shares fell on Wednesday
following losses on Wall Street, with weaker-than-expected U.S.
industrial production data damping sentiment and sending banks
lower, but defensive issues and key Seoul blue chips
outperformed.
The Korea Composite Stock Price Index (KOSPI) was
down 0.75 percent at 1,388.61 points as of 0122 GMT.
Sentiment was hurt by news that U.S. industrial production
declined at a steeper-than-expected rate.
Best Buy Co Inc (BBY.N), the largest U.S. consumer
electronics retailer, posted weaker-than-expected sales in its
first quarter, also denting sentiment. [ID:nN16302759]
"But compared with U.S. shares' overnight falls, Seoul stocks
are trading pretty firmly. However, the market lacks the momentum
to rise above the 1,400 point level as foreigners have turned
into net sellers," said Samsing Securities market analyst Hwang
Keum-dan.
"Buying appetite has again turned strong towards defensive
issues, and South Korea's key blue chips, including Samsung
Electronics (005930.KS) and Hyundai Motors (005380.KS) are
drawing interest as their share prices tend to be more stable
than their peers," Hwang added.
Samsung Electronics, the world's No.1 memory chipmaker, was
up 0.71 percent, while Hyundai Motor was flat.
SK Telecom (017670.KS), South Korea's top mobile phone
operator, rose 0.28 percent. KT&G (033780.KS), the country's
tobacco monopoly, gained 0.14 percent.
But banks retreated, pressured further by the weaker won
KRW=. KB Financial Group (105560.KS) fell 2.87 percent, while
Woori Finance Holdings (053000.KS) lost 2.86 percent.
Doosan Heavy Industries (034020.KS) rose 2.02 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 Cho In-karp, an analyst at Goodmorning
Shinhan Securities analyst Cho In-karp.
(Editing by Chris Lewis)
