(Updates to mid-morning)
By Park Jung-youn
SEOUL, June 2 (Reuters) - Seoul shares traded lower
on Monday, with underlying strength in oil prices and weak U.S.
consumer confidence depressing market sentiment despite
stronger-than-expected domestic export figures.
The Korea Composite Stock Price Index was down 0.93 percent
to 1,835.06 points as of 0119 GMT.
The market drew only limited strength from central bank data
Monday that showed exports in May rose by a faster-than-expected
27.2 percent from a year earlier, indicating that demand for
South Korean goods was holding firm despite worries about a
global slowdown.
"Export figures came out strong thanks to robust demand from
emerging markets," said Yi Hyo-keun, an economist at Daewoo
Securities, "But I'm doubtful whether the actual volume growth of
exports will remain strong as high oil prices are inflating the
dollar value of trade."
"The market will be volatile this week ahead of U.S.
employment figures on Friday and next week's triple witching
day," said Kang Moon-sung, market analyst at Korea Investment &
Securities, referring to a day when contracts for stock index
futures, stock index options and stock options all expire.
"It looks like arbitrage account positions are set to unwind
towards selling, and the index may struggle in the first two
weeks of the month," Kang said.
Technology shares fell across the board despite their Wall
Street peers' broader rally on Friday, hurt by a report that U.S.
consumer confidence fell to a 28-year low in May, with soaring
food and fuel prices pushing inflation expectations to the
highest level in more than a decade.[ID:nN30255728]
Samsung Electronics (005930.KS) was down 1.62 percent to
729,000 won and LG Electronics (066570.KS) was down 1.05 percent
to 141,500 won.
Separately, LG Electronics denied a local media report on
Monday that Sweden's Electrolux (ELUXb.ST) had proposed the two
firms team up to buy General Electric Co (GE.N)'s appliances
business.
"We have not been approached by Electrolux," said Judy Pae,
an LG spokeswoman.
SHIPBUILDERS RALLY
Shipbuilders such as Hyundai Heavy Industries (009540.KS) and
Samsung Heavy Industries Co Ltd (010140.KS) rose on the sector's
brightening outlook following a series of new ship orders from
overseas.
More large volume orders are expected for South Korea's
shipbuilders from Turkey and Iran, said Martin Song, an analyst
at Woori Investment & Securities.
"New orders for VLCC (very large crude carriers) in
particular are expected to boost earnings momentum in the
sector," Song said.
Hyundai Heavy was up 0.8 percent to 377500 won and Samsung
Heavy was up 1.87 percent to 43,650 won.
But carmakers such as Hyundai Motor (005380.KS) and Kia
Motors (000270.KS) fell on continued worries about consumer
spending, with Hyundai down 1.79 percent to 82,500 won and Kia
down 2.87 percent to 11,850 won.
Ssangyong Motor (003620.KS) fell 4.95 percent to 4,510 won.
Retailers such as Lotte Shopping Co Ltd (023530.KS) and
Shinsegae Co Ltd (004170.KS) also dropped, facing further
pressure from oil prices that remained over $127 a barrel.
Lotte Shopping dipped 0.86 percent to 344,000 won and
Shinsegae fell 2.17 percent to 585,000 won.
