(Updates to mid-morning)
By Park Jung-youn
SEOUL, June 9 (Reuters) - Seoul shares tumbled on Monday, led
by exporters such as Samsung Electronics (005930.KS) after oil
prices hit another record and grim U.S. job data came out on
Friday, taking a toll on Wall Street.
The Korea Composite Stock Price Index was down 1.93
percent to 1,796.97 points as of 0105 GMT, recovering from a
six-week intraday low of 1,785.16. The market was closed Friday
for a public holiday.
"We are seeing widespread ripple effects from Friday's shock
on the Wall Street, and I do not think this will end soon. The
factors depressing the market, namely inflation and the global
economic downturn, are not going to just go away," said Lee
Young-su, a market analyst at Daewoo Securities.
Downward pressure will continue until investors get a clearer
idea of where the oil price and U.S. economy are headed, analysts
said.
"Falls could be sharp, though we think the index will still
support the mid-1,700 level," Lee added.
The U.S. Consumer Price Index is set for release on Friday.
Major technology exporters such as Samsung Electronics and LG
Electronics (066570.KS) fell after data showed that the U.S. May
unemployment rate posted its biggest increase in 22 years,
deepening worries that South Korea's second-biggest export market
is headed for a recession. [ID:nN06467327]
Samsung Elec fell 3.1 percent to 687,000 won and LG Elec
dropped 3.93 percent to 134,500 won.
"Certainly electronics exporters would be affected by any
further deterioration of the U.S. economy, but this is not a new
concern," said James Song, an analyst at Daewoo Securities.
"As demand from emerging markets should hold firm, we do not
expect the the big picture outlook -- a gradual turnaround in
the chip industry -- to change dramatically," Song said, adding
that modest pricing of LCD screens should also keep the display
sector in relatively good health.
LG Display (034220.KS) fell 2.09 percent to 42,150 won, while
Hynix Semiconductor (000660.KS) bucked the trend, inching up 0.16
percent to 31,350 won.
Energy-price sensitive shares such as Korean Air Line
(003490.KS) and Asiana Airlines (020560.KS) lost ground after oil
jumped nearly 9 percent to a record $139 a barrel on Friday,
extending a two-day rally to more than $16 [nSP280973].
Korean Air was down 5.56 percent to 51,000 won and Asiana
Airlines shed 4.7 percent to 5,680 won.
However some steelmakers outperformed the benchmark after
media reports Monday that POSCO (005490.KS) may raise the prices
of its steel products by 15 percent.
POSCO dipped 0.51 percent to 582,000 won.
Doosan Heavy Industries (034020.KS) rose 0.41 percent to
122,500 won after the company said it won a 103 billion won
($99.90 million) order to supply 13 cranes to Singapore's PSA
Corp. Ltd.[ID:nSEO293963]
