*KOSPI down 1.94 percent led by manufacturers, banks
*Steelmakers, techs trade lower on econ concerns
*KB Financial sinks on Citi target price cut
SEOUL, Oct 15 (Reuters) - Seoul shares traded lower on
Wednesday after Wall Street slid overnight on worries about the
economy, with technology issues and banks leading the retreat
from Tuesday's sharp gains.
The Korea Composite Stock Price Index was down 1.94
percent at 1,341.04 points as of 0125 GMT after ending 6.1
percent higher on Tuesday, its biggest one-day rally since
February 2002, bringing gains on the week to 10 percent after
last week's 12.6 percent rout.
Foreign investors were net buyers on Tuesday after nine
consecutive selling sessions, but switched to net sellers again
on Wednesday, offloading 103 billion won ($85.43 million) worth
of stocks as of 0050 GMT.
"After large gains during the previous two sessions, indexes
are taking a breather. Economy worries are weighing on sentiment,
but we do not think they will cause indexes another shock.
Markets will move relatively flat for the reminder of this year
as investors remain cautious," said Won Jong-hyuck, a market
analyst at SK Securities.
"Eyes will also be on earnings. POSCO and LG Display's
numbers came out solid, providing a relatively good start to the
results season, though the bearish fourth quarter outlook was
discouraging," Won added.
Meanwhile South Korean Finance Minister Kang Man-soo said it
would be difficult for Asia's fourth-largest economy to grow over
4 percent this year due to the global financial crisis, a local
newspaper reported on Wednesday.[ID:nSEO216459]
Shares in POSCO (005490.KS) fell 5.29 percent after it
reported a 40 percent rise in quarterly net profit on Tuesday on
record sales but warned of a tougher trading outlook due to
weaker demand growth from autos and construction. [ID:nSEO134923]
Hyundai Steel (004020.KS) and Donkuk Steel (001230.KS) were
also down 4.33 percent and 5.58 percent respectively.
LG Display (034220.KS) traded 3.86 percent lower after
posting a 44 percent drop in quarterly net profit, above
forecasts, with the industry outlook darkening as a global
economic downturn hits demand for flat TVs and personal
computers. [ID:nSEO170066]
Citigroup cut its 2009 operating profit estimate on LG
Display by 44.3 percent to 523 billion won ($433.8 million) in a
note on Wednesday, citing a weaker demand outlook.
Other key technology issues slid as worries about a recession
and likely slump in consumer and business spending weighed on
sentiment, sending Samsung Electronics (005930.KS) 2.5 percent
lower and Hynix Semiconductor (000660.KS) down 3.19 percent.
Banks also retreated after their recent gains. KB Financial
Group (105560.KS) dipped 4.7 percent after Citigroup lowered its
target price on the firm by 8 percent to 58,000 won from 63,000
won and cut its 2009 profit forecast.
"Sizable construction (and) real estate-related corporate
exposure is a concern, especially considering a lot of it was
originated in recent quarters," Citigroup said in its report
dated Oct 14.
Hana Financial Group (086790.KS) was down 6.6 percent and
Woori Finance Holdings (053000.KS) lost 6.4 percent.
($1=1205.6 Won)
(Editing by Jonathan Hopfner)
