(Updates to mid-morning)
SEOUL, June 17 (Reuters) - Seoul shares turned lower after a
firm start, with sentiment remaining fragile on continued swings
in oil prices and persistent credit market worries as U.S. banks
unveil their second quarter earnings.
Construction shares fell across the board a day after South
Korea construction workers joined striking truckers, on worries
that construction projects would suffer [ID:nSEO281535].
Shares in Hyundai Engineering & Construction (000720.KS)
declined 4.07 percent to 77,700 won and Daewoo Engineering &
Construction (047040.KS) lost 1.68 percent to 17,550 won.
The Korea Composite Stock Price Index was down 0.7 percent to
1,748.91 points as of 0134 GMT, after opening 0.31 percent
higher. The index is down 5.4 percent on the month.
"Wall Street shares' lacklustre performance is offering
little direction, and oil's continued gyrations are keeping
investors at bay," said So Jang-ho, a market analyst at Samsung
Securities.
"The index will hover at around 1,750 points until late this
month, but I expect a rebound in July on earnings expectations.
Recent solid U.S. retail data will likely be reflected in South
Korean exporters' earnings as well," So added.
Analysts also said heavy selling by overseas investors in
both spot and futures market on the back of anxiety over U.S.
bank earnings added to the market volatility.
"Another thing to note is the U.S. dollar's growing strength.
It is drawing capital towards U.S. dollar-based assets," said Kim
Joong-hyun, a market analyst at Goodmorning Shinhan.
Hynix Semiconductor (000660.KS), the world's No.2, declined
1.53 percent to 28,950 won on local media reports that it was
considering issuing convertible bonds worth $500 million. Hynix
last week said it was considering an issue but said it had not
made any decisions regarding the exact size or timing.
"The news has stoked worries about Hynix's financial status,"
said Kim Young-june, an analyst at Kyobo Securities.
