November 20, 2012 / 11:47 PM / 5 years ago

Seoul shares seen flat after 2-day rally, Bernanke comments drag

SEOUL, Nov 21 (Reuters) - Seoul shares will likely be flat
on Wednesday following a two-day rally, as comments by Federal
Reserve Chairman Ben Bernanke about the potential impact of the
U.S. "fiscal cliff" rattled investors.
    "Global stocks rebounded strongly for the past two days over
hopes for resolving budget woes in the U.S., but there has been
little actual progress on the fiscal deal," said Kim Ji-hyung,
an analyst at Hanyang Securities. 
    But he added that the Korea Composite Stock Price Index
(KOSPI) is unlikely to fall sharply from current levels as it is
already below its 100-day moving average.
    Wall Street closed near flat on Tuesday, snapping a two-day
gains after Bernanke said the Fed does not have the tools to
offset a potential recession if politicians fail to strike a
deal to prevent a fiscal shortfall of some $600 billion.
 
    The KOSPI closed up 0.6 percent at 1,890.18 points
on Tuesday, climbing from a three-and-a-half month low marked on
Friday. 
------------------MARKET SNAPSHOT @ 22:28 GMT-------------------
 
INSTRUMENT     LAST      PCT CHG      NET CHG
S&P 500              1,387.81        0.07%        0.920
USD/JPY                 81.69        0.04%        0.030
10-YR US TSY YLD   1.668         --          0.054
SPOT GOLD           $1,727.40       -0.04%       -0.640
US CRUDE               $86.75        0.00%        0.000
DOW JONES            12788.51       -0.06%        -7.45
ASIA ADRS             119.76       -0.65%        -0.78
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>Bernanke's 'cliff' comments break two-day rally    
>Prices down on fiscal hopes, before supply         
>Yen sinks on mounting political concerns on BOJ    
>Oil drops with Gaza truce; losses pared on API data 
    
---STOCKS TO WATCH---  
      
    **DAEWOO ENGINEERING & CONSTRUCTION **
    The construction firm said on Tuesday that it had won a 261
billion Korean won ($24.02 million) order to build an oil
storage facility in Saudi Arabia. 
    The contract, worth 3.7 percent of last year's sales, is
with Sadara Chemical Company, a joint venture between Saudi
Arabian Oil Company (Saudi Aramco) and Dow Chemical.    
         
    **SK GAS **
    SK Gas said on Tuesday that it had bought an 18.8 percent
stake in Turkey's Eurasia tunnel for 57 billion won.
($1 = 1082.2750 Korean won)

 (Reporting By Somang Yang; Editing by Joseph Radford)

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