(Updates to midday)
* KOSPI fall alongside regional markets
* Large caps such Samsung Elec suffer profit taking
* STX Heavy, affiliates jump on recapitalization
SEOUL, Nov 13 Seoul shares lost gains made the
previous day in early trade on Wednesday, mirroring a weakness
round the region as uncertainty over when the U.S. Federal
Reserve will finally begin trimming its stimulus programme
weighed on investor sentiment.
Investors await Thursday's U.S. Senate hearing by Fed chair
nominee Janet Yellen for clarity on the U.S. central bank's
Atlanta Fed President Dennis Lockhart had spread uncertainty
on Tuesday by telling reporters that a reduction of U.S. central
bank's quantitative easing program remains a possibility at the
Federal Open Market Committee's next policy meeting on Dec.
Reacting bearishly to the prospect, along with other
regional bourses, the Korea Composite Stock Price Index (KOSPI)
fell 0.9 percent to 1,977.63 points as of 0215 GMT after
The KOSPI had risen 0.9 percent on Tuesday, halting a
"Thursday is expected to be the market's turning point as
many expect U.S. Senate hearing of Yellen would ease the
market's downward pressure stemming from uncertainty surrounding
the timeline of Fed tapering," said Chang Hee-jong, an analyst
at Hana Daetoo Securities.
Offshore investors offloaded a net 79.4 billion won ($74.11
million) of local shares in the morning, on track to extend
their selling streak to an eighth session.
Large caps eased, with the sub index falling 1
percent as Samsung Electronics Co Ltd dropped 1.9
percent following a 3.2 percent rise in the past two sessions.
Lotte Chemical Corp fell 1.7 percent following a
3.4 percent gain in the previous 3 sessions.
Meanwhile, STX Heavy Industries Co Ltd soared to
daily limit of 15 percent after announcing its plan to issue
shares to raise 177.2 billion won on Tuesday, allocating the new
shares to third parties in local banks.
Its affiliates STX Corp and STX Engine Co Ltd
jumped 7.6 percent and 5.4 percent, respectively.
Ssangyong Motor Co Ltd rose 2.5 percent on hopes
that Mahindra and Mahindra, its major stockholder,
will invest 1 trillion won by 2017.
($1 = 1071.3750 Korean won)
(Reporting by Jungmin Jang; Editing by Simon Cameron-Moore)