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Seoul shares seen down on China concerns, Wall St
June 24, 2013 / 11:46 PM / 4 years ago

Seoul shares seen down on China concerns, Wall St

SEOUL, June 25 (Reuters) - Seoul shares are set to open
lower on Tuesday due to worries about tight liquidity and
slowing growth in China, after falls on Wall Street overnight
driven by expectations the Federal Reserve will scale back its
bond buying programme.
    "Volatility will rule the market today. The market is more
than ripe for a technical rebound, but this probably won't
happen as sentiment has deteriorated badly," said Ko Seung-hee,
a market analyst at SK Securities.
    The growing likelihood of earnings downgrades ahead of the
upcoming second quarter earnings season also will keep investors
at bay, Ko said.    
    China's cash crunch eased on Monday after the central bank
moved to prevent the money market from seizing up, even though
bank stocks tanked as the authorities made clear that the days
of unlimited cheap official funds were over. 
    "If sentiment doesn't improve, we cannot rule out the market
falling even below 1,700," Ko said.
    The Korea Composite Stock Price Index (KOSPI)
finished down 1.3 percent at 1,799.01 points on Monday, ending
at its lowest level since late July, 2012.

-----------------MARKET SNAPSHOT @ 22:32 GMT--------------------
                   INSTRUMENT        LAST     PCT CHG    NET CHG
S&P 500                   1,573.09      -1.21%    -19.340
USD/JPY                      97.70      -0.02%     -0.020
10-YR US TSY YLD        2.544        --        0.000
SPOT GOLD                $1,281.81       0.04%      0.520
US CRUDE                    $95.01      -0.18%     -0.170
DOW JONES                 14659.56      -0.94%    -139.84
ASIA ADRS                  128.30      -2.35%      -3.08
----------------------------------------------------------------
>Wall St ends down but off lows as bond prices gain 
>Prices rebound, yields fall from near 2-year highs 
>Dollar gain Fed may end easing sooner than expected 
>Oil up, off 3-week low as floods threaten US import 

    STOCKS TO WATCH
    
    RETAILERS
    South Korea's key measure of consumer sentiment rose in June
to its best in more than a year as South Koreans' satisfaction
with their living standards improved, a central bank survey
showed on Tuesday - signalling domestic spending may be
recovering. 
    
    CELLTRION INC 
    Celltrion said on Monday that Temasek, its key shareholder
and Singapore's sovereign wealth fund, has agreed to increase
its stake in the biotech firm with an investment of a bout $130
million, as it awaits European approval of a key
drug. 
    
    REFINERS
    South Korea has pledged to the United States that it will
cut imports of Iranian crude by 15 percent in the next six
months to secure its next waiver of U.S. sanctions targeting
Iran's nuclear programme, two sources told
Reuters. 
    

 (Reporting by Jungyoun Park; Editing by Stephen Coates)

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