* KOSPI loses 1.38 pct
* Kumho Asiana shares rise on affiliate stake sale plans
* STX Offshore rallies on order news
(Updates to mid-morning)
By Jungyoun Park
SEOUL, June 15 (Reuters) - Seoul shares fell on Monday led by
banking issues such as KB Financial Group (105560.KS), but Kumho
Asiana Group shares outperformed on news of affiliate stake
sales.
The Korea Composite Stock Price Index (KOSPI) was
down 1.38 percent at 1,408.91 points as of 0211 GMT.
"Heavy selling by institutions is pressuring the index. It
seems markets will move within a boxed range around 1,400 points
for some time without compelling upward momentum," said Lee
Sun-yeop, a market analyst at Goodmorning Shinhan Securities.
Markets also reacted with caution to the outlook of South
Korea's finance minister, who said in comments published Monday
that the economy was still sliding even though the pace of
decline had slowed. [ID:nSEO14985]
Growing North Korea tension also dented sentiment after the
communist country said on Saturday it would start a uranium
enrichment program and weaponize all its plutonium in response to
fresh U.N. sanctions, which the United States said it would work
vigorously to enforce.[ID:nSP422357]
"There is not strong buying appetite in markets, and such
news comes as an additional pressure," Lee added.
Defense issues including Victek (065450.KQ) and Huneed
Technologies (005870.KS) spiked 12.31 percent and 14.58 percent
respectively.
Shares related to Kumho Asiana Group rose after the company
said on Sunday it was selling stakes in affiliates Asiana IDT,
Kumho Auto Lease and a stake in the Beijing Lufthansa Center
building complex owned by Daewoo Engineering & Construction
(047040.KS), which the group purchased in 2006.
The group said it expected to secure nearly 240 billion won
($192.2 million) from the sales.
Kumho Industrial (002990.KS) was up 2.13 percent, while
Asiana Airlines (020560.KS) was flat, outperforming the benchmark
index. Daewoo Engineering was down 2.31 percent.
But banks retreated across the board, with KB Financial Group
losing 2.13 percent and Hana Financial Group (086790.KS) shedding
4.28 percent.
Shares in Daewoo Motor Sales (004550.KS) also tumbled 7.66
percent after the company said in a filing to the Korea Exchange
that it was issuing 13 million new shares worth nearly 107
billion won ($85.69 million).
However STX Offshore & Shipbuilding (067250.KS) jumped 4.19
percent after the shipbuilder said on Monday it had won $340
million in orders to build tankers for an untidentified European
company. [ID:nSEO23635]
Defensive issues also outperformed, tracking their U.S.
peers, with SK Telecom (017670.KS), South Korea's top mobile
phone operator, rising 0.57 percent and KT&G (033780.KS), a
tobacco monopoly, advancing 0.42 percent.
(Editing by Jonathan Hopfner)
