* Weak yen, foreign selloff pressure exporters
* Automakers down for third session on earnings shock
* Korea Exchange Bank up more than 5 pct on share swap
SEOUL, Jan 28 Seoul shares ticked lower on
Monday morning, extending losses to an 8-week low due to a
weakening yen and concerns about fourth-quarter earnings.
The Korea Composite Stock Price Index (KOSPI) fell
0.3 percent to 1,940.33 points as of 0211 GMT, with foreign
investors selling a net 2.33 billion won ($2.17 million) worth
of shares near mid-session.
"Investors have begun preempting concerns about exporters'
outlooks since automakers announced weak earnings last week,
while large-caps continue to be pressured by foreign selloffs,"
said Kim Hyung-ryol, an analyst at Kyobo Securities.
South Korean shares have fallen 4.2 percent year-to-date as
of last Friday, underperforming a 2 percent gain by Asian peers'
as the weakening yen soured the outlook for
local exporters and foreign investors sold down their holdings.
A decision by U.S. fund manager Vanguard to switch from the
MSCI index to the FTSE to track markets for its $67 billion
emerging market fund is expected to wipe about 9 trillion won
($8.5 billion) from Seoul stocks by July.
Tech heavyweight Samsung Electronics extended
losses to fall 2.5 percent near mid-session, touching its lowest
price since Nov. 21.
"Concerns about South Korean tech firms' fundamentals has
increased, with high-end smartphone device shipments expected to
slow down this year," said Park Young-joo, an analyst at Woori
Investment & Securities.
Automakers lost ground for a third session, with
Hyundai Motor down 0.5 percent while sibling Kia
Motors slid 3.2 percent in the aftermath of
weaker-than-expected earnings last week.
Among daily movers, Korea Exchange Bank (KEB)
rose 5.3 percent after parent company Hana Financial Group Inc
announced on Monday it will seek 100 percent of
Korea Exchange Bank through a share swap.
The planned swap of 5.28 KEB shares for 1 Hana Financial
share will be completed in early April, with KEB to be delisted
by April 26.
Declining shares outnumbered winners 406 to 347. The KOSPI
200 benchmark of core stocks was down 0.5 percent,
while the junior KOSDAQ edged 0.1 percent lower.
($1 = 1074.3000 Korean won)
(Reporting by Joyce Lee; Editing by Richard Pullin)