SEOUL, Nov 21 (Reuters) - Seoul shares recouped most of their
initial losses to trade flat on Wednesday, as LG Electronics and
SK Energy rose in anticipation of strong earnings, although bank
shares extended falls amid concerns about tightening credit.
South Korean shares have been in a three-week downward streak
since hitting a record high on Nov. 1, dented by heavy foreign
selling which has reached a net 5.8 trillion won ($6.3 billion)
so far this month.
A lowered 2008 growth forecast by the Federal Reserve on
Tuesday also weighed on the market, and analysts expected the
domestic stock markets to remain weak throughout the year end.
"For the short term, the falls look to have gone too far,"
said Kang Hyun-chul, an analyst of Woori Investment & Securities.
"But since the third-quarter earnings season ended, no fresh
momentum has been in sight. Investors are pricing in the cautious
outlook for the U.S. economy and its indicators coming until the
year end."
The Korea Composite Stock Price Index <.KS11> was down 0.06
percent at 1,871.20 points, off an early low of 1,845.28.
Seoul shares are way back from the lifetime high of 2,085.45
hit hit three weeks ago, falling on Tuesday to a two-month low of 1,819.18 and clipping gains for the year to 30.5 percent as of
Tuesday's close from around 45 percent.
Shinhan Financial Group <055550.KS>, which runs South Korea's
No. 2 bank, lost 2.58 percent to 49,000 won, in line with the
banking subindex's <.KS51> 2.17 percent fall.
LG Electronics <066570.KS>, which makes consumer electronics
goods, flat screen display panels and mobile phones, rose 3.65
percent to 93,700 won as expectations grew for a rise in plasma
display panel prices.
Oil refiner SK Energy <096770.KS> advanced 3.18 percent to
178,500 won, as it was expected to benefit from higher oil
prices. Global oil crude prices <CLc1> soared to a record.
Shares in Dongkuk Steel Mill Co <001230.KS> jumped 4.69
percent to 49,100 won, on news it has agreed to build a $2
billion steel plant in Brazil with Brazilian mining giant CVRD
<VALES.SA> <RIO.N>. [ID:nN20559657]
The junior Kosdaq <.KQ11> gained 1.30 percent to 749.06
points
(Reporting by Kim Yeon-hee; Editing by Keiron Henderson)
(([email protected]; +82 2 3704 5646; Reuters Messaging:
[email protected]))
($1=921.9 Won)
Keywords: MARKETS KOREA STOCKS