(Updates to mid-morning)
SEOUL, Dec 28 (Reuters) - Seoul stocks fell 0.3 percent on
Friday, hurt by fears of global unrest after Pakistani opposition
leader Benazir Bhutto was assassinated, while weak U.S. durable
goods orders data revived concerns over South Korea's No.2 export
market.
Financials such as Kookmin Bank also tracked global peers
lower after a Goldman Sachs analyst said Citigroup Inc (C.N),
Merrill Lynch MER.N and JPMorgan Chase & Co (JPM.N) may face
larger fourth-quarter debt write-offs than previously expected.
[ID:nN27302523]
Although South Korea's stock market is expected to finish the
last trading day of 2007 on a weak note, the market has gained
nearly a third this year, the third-best performing major market
in Asia after China and Hong Kong.
"The assassination in Pakistan pushed up oil prices and there
is a worry that mounting geopolitical risks would further boost
oil prices," said Kim Hak-kyun, an analyst at Korea Investment &
Securities.
"But as Pakistan is not a country with developed financial
markets and the country's connection with global credit markets
is minimal, the case would have a limited and short-term impact
on markets."
The Korea Composite Stock Price Index (KOSPI) fell
0.33 percent to 1,902.06 points as of 0047 GMT.
Despite the global credit crunch that has sent shockwaves
through stock markets, Seoul's main index has so far slipped less
than 3 percent in the fourth quarter, backed by strong retail
interest in equities investment products.
The assassination in Pakistan hurt investment sentiment in
global markets, already soured by a weak U.S. durable goods
report and talk of more subprime mortgages-related write-downs by
financial services companies.
Lenders led by Kookmin Bank 060000.KS fell, taking their
cue from the falls in U.S. financial firms and as investors
continued to lock in recent gains that had been driven by the
pledges of South Korea's president-elect that he would deregulate
the financial sector and make acquisitions easier.
Top lender Kookmin Bank slipped 0.86 percent to 69,200 won
and fourth-ranked Hana Financial Group (086790.KS) dropped 2.15
percent to 50,200 won.
But expectations the market's bull run would continue well
into 2008 boosted brokerages, with Samsung Securities Co
(016360.KS) rising 1.29 percent to 94,200 won and Daewoo
Securities Co (006800.KS) advancing 3.52 percent to 30,900 won.
(Reporting by Kim Soyoung; Editing by Sei Chong)
