(Updates to mid-morning)
SEOUL, March 18 (Reuters) - Seoul stocks were up 0.5 percent
on Tuesday, led by electronics titles, recouping some of the 1.6
percent losses which took shares down to a 10-month closing low
in the previous session.
Electronics titles such as Samsung Electronics (005930.KS)
and LG Display (034220.KS) rose on hopes the weakening won will
make South Korean exports more price-competitive in overseas
markets.
Samsung advanced 3.1 percent to 567,000 won and LG Display
went up 3 percent to 45,000 won.
"Samsung Electronics is benefiting from the weakening local
currency, and also its valuation has become attractive after an
extended fall. Local institutional investors are snapping up
Samsung shares as they view mid-500,000 won level as affordable,"
said Kim Gee-soo, an analyst at Goodmorning Securities.
Transportation shares also gained after oil fell more than 4
percent overnight, with Korean Air (003490.KS) gaining 3.25
percent to 54,000 won, and Asiana Air 020560.KQ up 2.74 percent
to 6,000 won.
The Korea Composite Stock Price Index was up 0.58 percent to
1,583.55 as of 0148 GMT.
"Investors are calmer today as they take a wait-and-see
stance on Fed's rate decision and major U.S. banks' earnings
tonight," said Lee Sun-yeob, an analyst at Goodmorning Shinhan
Securities. "I expect shares to remain relatively flat today," he
added.
The Federal Reserve holds a policy-setting meeting after the
Seoul close on Tuesday. The U.S. central bank on Sunday made an
emergency cut in the discount rate it charges on direct loans to
banks and announced a new lending programme to provide credit to
other big Wall Street firms.
Fed fund futures on Monday implied traders are fully pricing
in a cut of 1 percentage point cut in key U.S. interest rates,
which have already been slashed by 2.25 percentage points to 3
percent since last September.
The bargain-basement sale of U.S. investment bank Bear
Stearns to JPMorgan Chase & Co marks the biggest casualty so far
of the widening U.S. credit crisis, which continues to weigh on
South Korean financial shares.
Kookmin Bank 060000.KS was down 3.77 percent at 51,000 won,
while Woori Finance Holdings (053000.KS) lost 2.17 percent to
15,750 won.
Nong Shim (004370.KS), a dominant snack maker, was down 3.65
percent at 185,000 won after a news that a dead rat was found in
a bag of its flagship shrimp chip snack.
(Reporting by Park Jung-youn; Editing by Keiron Henderson)
