(Updates to mid-morning)
By Park Jung-youn
SEOUL, July 4 (Reuters) - Seoul shares traded slightly lower
on Friday, continuing their downward run after diving 6.5 percent
over the last six straight sessions, with oil's gains overnight
dampening sentiment towards equities.
The Korea Composite Stock Price Index was down 0.12
percent to 1,604.57 points as of 0109 GMT, about 4.4 percent away
from the mid-March low of 1,537.53 points.
"Foreign selling has slowed a bit after Wall Street's rebound
during its shorter pre-holiday session overnight, but oil's rise
to a new record has cast some chill over the market," said Lee
Sun-yeob, a market analyst at Goodmorning Shinhan Securities.
Lee also said that despite market talk of the index having
hit bottom after its steep losses, shares could fall more should
conditions deteriorate further.
"It is dangerous to assume that things will get better from
here. There is little way of knowing how far up oil prices will
go, for instance."
Shares in LG Display (034220.KS) were up 0.66 percent to
37,850 won, but down from an earlier high of 38,200, after
Citigroup cut its target price on the flat screen maker by 13
percent, citing weaker than expected LCD demand from China.
"We remain positive on this year's outlook with little
capacity growth," Citi Investment Research said in a research
note dated July 3.
Energy-price sensitive stocks such as Korean Air Line
(003490.KS) and Asiana Airlines (020560.KS) were again battered
after U.S. oil CLc1 hit yet another record near $146 a barrel
on Thursday, stoking concerns about profitability and consumer
sentiment.
Korean Air fell 0.46 percent to 430,000 won and Asiana
Airlines dropped 1.21 percent to 4,890 won.
But shares in shipbuilders rose across the board on
expectations that they are set to receive large volume of orders
from overseas, analysts said.
Daewoo Shipbuilding & Marine Engineering (042660.KS) rose
2.32 percent to 37,450 won after the world's third-largest
shipbuilder said it had received a 2.44 trillion won ($2.34
billion) order for 16 container ships from a European company.
Samsung Heavy Industries (010140.KS) climbed 1.21 percent to
37650 won, and STX Shipbuilding (067250.KS) advanced 1.52 percent
to 26,750 won.
Exporters such as Hyundai Motor (005380.KS) and Kia Motors
(000270.KS) also gained after U.S. job data proved not to be as
weak as the market had feared, lifting U.S. indexes and easing
fears of an accelerating slowdown in South Korea's second-biggest
export market.
Hyundai Motor gained 2.28 percent to 71,800 won and Kia
Motors advanced 3.07 percent to 11,750 won.
Shares in retailers such as Lotte Shopping (023530.KS) and
Lotte Midopa (004010.KS) rose on expectations that earnings would
remain solid despite current inflationary pressure.
"Value consumption could be seen in the latest consumption
patterns, in which average consumers set aside more money for
brand name goods as they become more selective and conscious,"
said Kim Kyung-ki, an analyst at Hana Daetoo Securities said.
"Even in shopping for food, consumer are increasingly veering
towards large, well-known chains rather than smaller retailers,"
Kim added.
Lotte Shopping was up 1.58 percent to 322,000 won and Lotte
Midopa was flat at 9,700 won.
