February 25, 2013 / 11:31 PM / 5 years ago

Seoul shares seen lower for second day on Italian election woes

SEOUL, Feb 26 (Reuters) - Seoul shares are likely to fall
for a second day on Tuesday, as voter projections pointed to a
deadlock in Italy's parliament, raising concerns of political
paralysis that could reginite the euro zone's debt crisis. 
    "Due to the uncertainty caused by Italy's elections, we
could see some foreign selling which will put a temporary halt
to the KOSPI's V-shaped recovery" said Lim Dong-rak, an analyst
at Hanyang Securities.
    However, Lim said local markets were trading below their
historical price-equity ratio (PER) of 10, suggesting that
valuations were still attractive.
    The U.S. benchmark, the Standard & Poor's 500 index,
suffered its worst one-day percentage drop in over three months
on Monday after the Italian elections raised questions about
whether the euro zone's austerity programme could continue.
    The Korea Composite Stock Price Index (KOSPI) fell
0.5 percent to close at 2,009.52 points on Monday, a four-day
low. The index is still up 2.4 percent in February. 
------------------MARKET SNAPSHOT @ 22:28 GMT-------------------
S&P 500                1,487.85       -1.83%      -27.750
USD/JPY                   92.11        0.35%        0.330
10-YR US TSY YLD     1.865         --         -0.096
SPOT GOLD             $1,584.50       -0.59%       -9.460
US CRUDE                 $93.11        0.00%        0.000
DOW JONES              13784.17       -1.55%      -216.40
ASIA ADRS               134.26       -1.63%        -2.23
>Wall St trips and falls on cloudy Italian election 
>Yields dip to 1-month low on Italy election        
>Euro slumps on Italy fears; yen surges broadly     
>Brent up as China import rise,Italy elections weigh 

    **Daelim Industrial Co **
    The South Korean builder came under scrutiny from the U.S.
government watchdog on Monday for having a U.S. government
contract while reportedly engaging in business in Iran.
    Under U.S. sanctions law, any foreign company that has an
investment in Iran's energy sector equal to or greater than $20
million is subject to punishments including being cut off from
the U.S. financial system. 
    Hewlett-Packard Co said on Monday it will sell its
WebOS operating system to LG Electronics. 
    The South Korean smartphone maker will use the software
platform for its "smart" or Internet-connected TVs. The terms of
the deal were undisclosed. 
    Hanwha Chemical sold over 16 million shares in Hanwha Life
Insurance Co in a block deal on Monday, reducing its
stake in the insurer from 3.7 percent to 1.9 percent.
    The sale, which raised 116 billion Korean won ($107
million), valued the shares at 7,200 won, a discount from
Monday's closing price of 7,970 won.
    Hanwha Chemical said that the deal aimed to raise funds to
invest in future growth. Morgan Stanley oversaw the sale, which
comprised 3.35 percent of the chemical producer's net worth.  
 ($1 = 1086.3250 Korean won)

 (Reporting by Somang Yang; Editing by Richard Pullin)
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