* Samsung Everland IPO plan shakes up portfolio allocations
* Foreigners on track to snap the net-buying streak
* Won eases modestly on dollar's broad strength
SEOUL, June 3 South Korean shares pared early
losses on Tuesday as Samsung Group affiliates rallied following
Samsung Everland's initial public offering plan.
The Korea Composite Stock Price Index (KOSPI) was
down 0.1 percent at 2,000.61 points as of 0215 GMT after
touching an intraday low of 1,990.72, the weakest level since
Samsung Everland Inc said on Tuesday it will seek an IPO, a
widely anticipated move seen as the next step in Samsung Group's
restructuring and the transfer of control to the next generation
of the owner Lee family.
"Samsung Everland's IPO plan is good news for its
affiliates, with investors increasing portfolio weighting of
Samsung related shares while dumping the rest," said Hyundai
Securities analyst Bae Sung-young.
Samsung Electronics Co Ltd and Samsung SDI Co
Ltd rose 1.8 percent and 4.3 percent, respectively.
KCC Corp, which has a 17 percent stake in Samsung
Everland, jumped 8.2 percent.
The Samsung Everland news prompted some investors to adjust
"The market is digesting the portfolio switching and some
investors are opting to stay in the sidelines before the
upcoming market closures," added Bae.
South Korean financial markets will be closed on Wednesday
and Friday due to elections and Memorial Day, respectively.
Foreign investors offloaded a net 97.8 billion won ($95.51
million) worth of KOSPI shares near mid-session, and looked set
to snap a 15-day buying streak.
Foreigners have brought in 3 trillion won worth of capital
into the main bourse during their streak.
Steelmaker POSCO fell 1.9 percent and Naver Corp
, the country's largest search portal operator, slid
In the foreign exchange market, the won eased
slightly against the dollar on outflows from the stock market
and as the greenback gained versus a basket of currencies on
upbeat U.S. factory activity growth in May. But the demand for
the won by exporters for settlements kept the won's weakness in
U.S. manufacturing activity accelerated in May and
construction spending rose for a third straight month in April,
suggesting economic growth was regaining steam in the second
The local currency was quoted at 1,024.7 against
the dollar as of 0215 GMT, compared with Monday's onshore close
0215 GMT Prev close
Dollar/won 1,024.7 1,024.1
Yen/won 10.0147/068 9.9990
*KTB futures 106.03 106.05
KOSPI 2,000.61 2,002.00
* Front-month futures on three-year treasury bonds
($1 = 1024.0000 South Korean Won)
(Reporting by Jungmin Jang; Editing by Kim Coghill)