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S.Korean shares fall on fresh Ukraine worry, won treads water
August 29, 2014 / 3:21 AM / 3 years ago

S.Korean shares fall on fresh Ukraine worry, won treads water

* Worries on Q3 earnings intensifying - analyst
    * Won little changed, slips from Thurs 7-wk high

    By Joonhee Yu
    SEOUL, Aug 29 (Reuters) - Seoul shares fell on Friday as
renewed geopolitical tensions in Ukraine led investors to curb
emerging market bets and seek refuge in safe havens.
    The Korea Composite Stock Price Index (KOSPI) was
down 0.27 percent at 2,070.11 points as of 0245 GMT. 
    South Korean shares have barely moved in August, little
changed from the end-July close of 2,076.12 points. In July, the
KOSPI touched a three-year high. 
    "Worry over corporate earnings is casting a shade of doubt
over the market and it's only intensifying as we approach the
end of the quarter" said Kim Yong-goo, an analyst at Samsung
Securities.
    "Unless there is more progress in Europe and Japan on the
policy front, shares are likely to be shackled in a narrow range
between 2,050 and 2,090," he said.
    Shipbuilders bucked Friday's trend, as bargain hunting
persisted in the ravaged sector whose sub-index has been the
worst performer this year. 
    Hyundai Mipo Dockyard spiked 7.2 percent while
Daewoo Shipbuilding & Marine Engineering advanced
2.7 percent.
    Foreign buying showed signs of losing steam, with offshore
investors buying a modest 18.8 billion won ($18.53 million)
worth of net shares by late morning, compared to a net 269.5
billion won ($265.57 million) picked up over the three previous
sessions. 
    Shares in Dongbu Construction tumbled more than
12 percent after local media reported it was facing a liquidity
crunch and possible restructuring.
    Overall, decliners outnumbered advancers 501 to 296 on the
main bourse as of 0245 GMT.  
    The South Korean won ticked slightly lower Friday
morning after posting a 7-week intraday high the previous
session, as exporter demand for the local currency for month-end
settlements was offset by a dollar rally on the back of positive
U.S economic data.
    The local currency was quoted at 1,014.8 to the
dollar at 0245 GMT, compared to Thursday's close of 1,014.4
    September futures on three-year treasury bonds were
up 6 basis points at 107.03. 
    
                       0245 GMT    Prev close
 Dollar/won             1,014.8       1,014.8
 Yen/won             9.7802/878        9.7836
 *KTB futures            107.03        106.97
 KOSPI                 2,075.76       2,070.11
 * Front-month futures on three-year treasury bonds

 (Reporting by Joonhee Yu; Editing by Richard Borsuk)

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