*Steelmakers rally after losses
*Financials fall on renewed credit worries
*Automakers rise on weaker won, fall in oil
(Updates to midmorning)
By Park Jung-youn
SEOUL, Aug 13 (Reuters) - Seoul shares traded lower on
Wednesday after their U.S. peers fell overnight on revived credit
worries, sending financials such as Woori Finance Holdings
(053000.KS) lower, but easier oil lifted some manufacturers.
The Korea Composite Stock Price Index was down 0.25
percent at 1,573.15 points as of 0041 GMT.
"Fresh credit worries and the subsequent share falls on Wall
Street are weighing on sentiment," said Hwang Geum-dan, a market
analyst at Samsung Securities.
"Despite oil's falls, investors remain cautious as concerns
about fundamentals such as economies and corporate earnings
pervade the markets. Options expiry due tomorrow is also adding
to volatility," Hwang added.
Steelmakers rallied after their latest steep losses on demand
and import cost worries, with POSCO (005490.KS) rising 0.32
percent to 475,000 won and Hyundai Steel (004020.KS) up 1.74
percent to 58,600 won. Dongkuk Steel (001230.KS) was also trading
1.21 percent higher at 41,850 won.
Shares in Hyundai Steel were further boosted by its solid
second quarter earnings reported late Tuesday, with net profit
rising 70.2 percent year-on-year.
"The numbers were surprisingly strong, and despite the
inevitable slowdown in the markets, its second half earnings will
still come out relatively solid," said Park Hyun-wook, an analyst
at Hyundai Securities.
However financials lagged behind the broader market after
news of further mortgage-related losses by a major U.S. bank
dampened sentiment toward the sector, sending Woori Finance
Holdings 1.88 percent lower to 15,700 won and Shinhan Financial
Group (055550.KS) down 1.01 percent to 48,950 won.
Automakers rose on weakness in the won currency and a fall in
oil CLc1 prices to around $113 per barrel, with Hyundai Motor
(005380.KS) up 0.55 percent to 73,700 won and Kia Motors
(000270.KS) up 1.14 percent to 13,300 won.
Meanwhile shares in GS Construction (006360.KS) rose 1.43
percent to 106,500 won after the builder said Wednesday that its
consortium had won a $501 million gas facility project order from
Saudi Aramco.
Oil refiners continued to underperform on prospects of weaker
demand toward oil products, pushing SK Energy (096770.KS) down
0.52 percent to 94,900 won and S-Oil (010950.KS) 0.96 percent
lower to 61,800 won.
