(Updates to mid-morning)
By Park Jung-youn
SEOUL, July 1 (Reuters) - Seoul shares traded slightly lower
on Tuesday, continuing their downward run for a fourth straight
session as a batch of economic data pointed to weakening economic
growth and mounting stagflation pressure.
The Korea Composite Stock Price Index was down 0.28
percent to 1,670.23 points as of 0126 GMT.
"Despite its latest steep falls, the index is still failing
to make any meaningful recovery as internal and external economic
factors remain grim," said Bae Sung-young, a market analyst at
Hyundai Securities.
"Eyes are on the central bank's interest rate decision and
key economic data such as employment numbers due next week," Bae
added.
The Bank of Korea said early on Tuesday it cut South Korea's
second-half GDP growth forecast by a half percentage point to 3.9
percent, adding that it was concerned about inflation staying
above target for a longer period.[ID:nSEO311366]
Analysts said that while duller second-half economic growth
came as no surprise, the central bank's expectations of extended
inflation pressure was a significant concern.
Weaker-than-forecast export data on Tuesday also weighed on
sentiment.[ID:nSEV000430]
Shares in memory chip makers such as Samsung Electronics
(005930.KS) and Hynix Semiconductor (000660.KS) continued to face
pressure on persistent worries that a weak global economy is set
to weigh on the earnings of world's largest chip makers.
Samsung Elec fell 1.76 percent to 614,000 won and Hynix
Semiconductor lost 3.4 percent to 241,50 won.
But shares in SK Energy (096770.KS) rose for a sixth straight
session a day after the company said it had secured a 20 percent
stake in an oil field in Vietnam currently under exploration.
"Second quarter earnings of crude refiners are set to be
strong," said Park Young-houn, an analyst at Dongbu Securities
said.
"SK Energy's active exploration and development activities
are seen as a strong positive," Park added.
SK Energy was up 2.58 percent to 119,500 won.
