Seoul shares slip, but techs lend support

Thu Aug 13, 2009 3:10am EDT
 
[-] Text [+]
 * KOSPI edges lower on options expiry, programme selling
 * Samsung Elec, LG Display help markets
 * Losses in crude refiners, banks weigh
 (Updates to close)
 By Jungyoun Park
 SEOUL, Aug 13 (Reuters) - Seoul shares slipped on Thursday
after trading in positive territory for most of the session, with
options expiry causing some volatility near the close but gains
by techs like Samsung Electronics (005930.KS) lending support.
 The Korea Composite Stock Price Index  (KOSPI)
finished down 0.05 percent at 1,564.64 points.
 "The U.S. Federal Reserve's comments and decision to keep
rates on hold helped markets by easing exit strategy and monetary
policy uncertainties," said Park Suk-hyun, a market analyst at
KTB Securities.
 The Federal Reserve said the economy was leveling out and
left interest rate unchanged at the end of its two-day policy
meeting. It also said it would extend the duration but not the
size of a program to buy long-term government debt.
[ID:nN12181240]
 "Heavy programme selling in the last minute of trading amid
today's options expiry prompted falls in the main index," said
Kim Joong-hyun, a market analyst at Goodmorning Shinhan
Securities.
 Foreign investors returned to net buying after snapping a
20-session purchasing streak on Wednesday, picking up a net
217.22 billion won ($175.6 million) worth of stocks.
 Technology issues rose advanced led by Samsung Electronics,
the world's No.1 memory chip maker and the largest share on the
KOSPI, which finished up 1.3 percent, and LG Display (034220.KS),
which gained 3.6 percent.
 "After taking a brief breather, key tech issues seem to be
coming back to life again," said Song Myung-sup, an analyst at HI
Investment & Securities.
 Tong Yang Securities (003470.KS), which was added to the MSCI
Korea Standard Index .MSCIKR, advanced 4.59 percent, while LS
Industrial System (010120.KS), also a new addition to the index,
declined 0.51 percent.
 Steel sheet and pipe maker Hyundai Hysco (010520.KS) shot up
7.77 percent after it reported late Wednesday a 13.7 percent rise
in second-quarter net profit from a year earlier to 34 billion
won ($27.37 million).
 "Firm sales of steel sheets to Hyundai Motor (005380.KS) and
Kia Motors (000270.KS) will continue to fuel profit gains in the
current quarter," said Moon Jeong-up, an analyst at Daishin
Securities.
 "But risks to its earnings remain in imported hot-rolled coil
prices, which are expected to rise toward the end of the year,"
Moon added.
 Hot-rolled coil is a key raw material for Hyundai Hysco's
products.
 Shares in Unison (018000.KQ) spiked 14.7 percent after news
the wind turbine parts manufacturer would soon sign a MOU with
China's Fuxin city to supply it 1,000 2 megawatt wind power
generating facilities over the next five years.
 Asiana Airlines (020560.KS) fell 0.48 percent after South
Korea's No.2 air carrier posted a 129.5 billion won operating
loss for the second quarter.
 Losses in crude refiners and banks also pressured the market,
with GS Holdings (078930.KS), the holding company of South
Korea's No.2 crude refiner GS Caltex, falling 1.97 percent and KB
Financial Group (105560.KS) losing 1.87 percent.
 ($1=1236.7 Won)

 

More News

Seoul shares rise on Fed comments; MSCI additions up
Wednesday, 12 Aug 2009 10:09pm EDT 
Seoul shares may rise; MSCI Korea additions eyed
Wednesday, 12 Aug 2009 07:38pm EDT 
Seoul shares fall, pressured by banks, Fed caution
Wednesday, 12 Aug 2009 02:53am EDT 
Seoul shares fall on foreign selling, Fed caution
Tuesday, 11 Aug 2009 10:41pm EDT 
Seoul shares flat; muted reaction to rate decision
Monday, 10 Aug 2009 10:21pm EDT 

Featured Broker sponsored link