(Updates to mid-morning)
By Park Jung-youn
SEOUL, July 3 (Reuters) - Seoul shares traded lower on
Thursday, continuing their bearish run after new record oil
prices added to inflation worries, with Wall Street's fall
overnight on grim economic data further dampening sentiment.
The Korea Composite Stock Price Index was down 1.84
percent to 1,593.68 points as of 0106 GMT, around 4 percent above
its mid-March low of 1,537.53 points and 16 percent off its
mid-May high of 1,901.
"Foreigners are continuing to offload shares, and local
institutions and retail investors have joined the selling spree
as panic spreads in the market," said Juhn Chong-kyu, a market
analyst at Samsung Securities.
Foreigners unloaded 195 billion won ($188.1 million) worth of
shares as of 0108 GMT, heading for a 19th straight selling
session.
"Shares have become quite cheap, with the average listed
share trading at 10 times the earnings multiple," said Lawrence
Kim, an analyst at Woori Investment & Securities.
"Amid the wide selloff, we think long-term investors like
pension managers will probably take these attractive valuations
as a good buying opportunity."
The main index's downward run was led by steelmakers such as
POSCO (005490.KS), which dropped along with their international
counterparts as the sector contends with rising raw material
prices and slowing economies.
"Global steel shares have literally tumbled lately, dampening
appetite for South Korean steel shares as well...also, steel
contract prices in China have weakened recently," said Moon
Jung-up, an analyst at Daishin Securities.
POSCO fell 5.83 percent to 492,500 won and Hyundai Steel
(004020.KS) lost 6.42 percent to 67,000 won. Dongbu Steel
(016380.KS) slid 6.43 percent to 11,650 won.
But memory chip makers such as Samsung Electronics
(005930.KS) and Hynix Semiconductor (000660.KS) rebounded after
their sharp falls in recent weeks.
Samsung had fallen 15 percent since late May as of
Wednesday's closing, and Hynix 23 percent.
Samsung was up 1.43 percent at 639,000 won and Hynix was up
3.37 percent at 24,550 won.
Carmakers such as Hyundai Motor (005380.KS) and Kia Motors
(000270.KS) slid across the board a day before key U.S. job data
is due, as investors grow increasingly unsure about South Korea's
second biggest export market, and after other data showed on
Wednesday that planned layoffs at U.S. firms rose nearly 50
percent above year-ago levels. [ID:nN02359314]
Hyundai Motor fell 2.59 percent to 71,600 won and Kia Motors
shed 1.28 percent to 11,550 won. Ssangyong Motor (003620.KS)
plunged 6.94 percent to 3,350 won, extending a downward run
following dismal June sales numbers.
Oil price-sensitive airline and tourism issues also retreated
after oil CLc1 hit above $144 a barrel overnight.
South Korea's top air carrier Korean Air Line (003490.KS) was
down 3.86 percent to 42,300 won and Asiana Airlines (020560.KS)
was down 4.17 percent to 4,945 won.
Hana Tour (039130.KQ), a leading tour agency, lost 4.94
percent to 31,750 won.
($1=1036.7 Won)
