(Updates to mid-morning)
SEOUL, April 22 (Reuters) - Seoul shares edged lower on
Tuesday after a run of four straight gains lifted the KOSPI
above 1,800 on Monday, with financials pressured by earnings
worries after a major U.S. bank reported poor results overnight.
Financials such as Kookmin Bank 060000.KS fell after Bank
of America (BAC.N), the largest U.S. retail bank, posted a 77
percent decline in quarterly profit, dampening hopes that the
shockwaves from the credit crunch may be fading.
Kookmin fell 1.98 percent to 64,500 won and Shinhan
Financial Group (055550.KS) declined 1.81 percent to 54,100 won.
The Korea Composite Stock Price Index was down 0.1 percent
to 1,798.65 points as of 0113 GMT.
"Market sentiment has turned cautious after U.S. earnings
came out poor on Monday, stoking worries about economic
recession," said Kim Joong-hyun, a market analyst at Goodmorning
Shinhan Securities.
However shares in Hynix Semiconductor (000660.KS) rose after
Hyundia Securities upgraded its target price on the No.2 memory
chip maker citing potential investments by its business partner
and expectations for market improvements in the second half.
"Better balance of supply and demand may come about in
around second half of 2008 or in early 2009, as its rivals are
slashing capital expenditure plans," said Jay Kim, an analyst at
Hyundai Securities.
Qimonda, Hynix's smaller rival said on Monday that it would
cut its global work force as part of an effort to cut costs,
after previously drastically reducing capital expenditure plans.
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Mobile phone operators gained across the board, with SK
Telecom (017670.KS) gaining 0.26 percent to 194,500 won and KTF
032390.KS rose 1.43 percent to 28,350 won.
Meanwhile Samsung Group, South Korea's biggest conglomerate,
is set to announce reform plans on Tuesday, less than a week
after Chairman Lee Kun-hee was indicted on charges of tax
evasion and breach of trust.
Samsung Electronics (005930.KS), the world's largest
chipmaker and also a flagship affiliate of Samsung Group, held
steady, up 0.15 percent at 675,000 won.
"We have yet to see the details of these structural changes,
but I do not expect any dramatic market movement from it," said
Kim of Goodmorning Shinhan.
However individual shares that are more sensitive to the
ownership structure changes, such as Samsung Card (029780.KS)
rose 5.99 percent to 58,400 won.
Some steel shares such as POSCO (005490.KS) rose on news
that Nippon Steel Corp (5401.T), Japan's top steelmaker, plans
to ask automakers and other customers to accept nearly 40
percent increases in prices for its mainstay steel products.
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POSCO, the world's fourth-largest steelmaker, gained 0.43
percent to 467,000 won.
S-Oil fell 2.11 percent to 69,500 won on after reporting a
55 percent drop in its quarterly net profits on Tuesday.
(Reporting by Park Jung-youn; Editing by Keiron Henderson)
