Seoul shares seen lower; eyes on banks, Hyundai

SEOUL, March 2 (Reuters) - Seoul shares may open lower on
Monday after falls on Wall Street and as worries about the U.S.
financial sector resurface, likely putting local financials under
pressure.
"U.S. woes are being highlighted yet again, with the latest
developments from AIG and Citigroup renewing worries about other
banks. There are new worries that credit problems still have some
way to go before being resolved," said Han Beom-ho, a market
analyst at Goodmorning Securities.
The U.S. government will boost its equity stake in Citiroup
to as much as 36 percent, bolstering the bank's capital base and
potentially diluting existing shareholders' ownership by 74
percent. [nN27330392]
The U.S. government will also pour another $30 billion or so
into American International Group Inc as the embattled
issuer prepares to report the biggest loss in history and
struggles to sell assets. [nN01344575]
"Eyes will be on foreign trading patterns. The main index
will likely move in the 1,000 to 1,200 point range for the short
term," Han added.
South Korean exports in February sank 17.1 percent, half as
much as their drop in January, but overseas sales are expected to
keep falling as consumers and companies cut spending amid a
worsening global economy. [nSEO221167]
Hyundai Motor <005380.KS> may be in the spotlight after the
Hyundai Motor Group said it plans to invest nearly $6 billion
this year, and will focus on developing environment-friendly
cars. [nSEO197872]
The Korea Composite Stock Price Index (KOSPI) <.KS11>
finished up 0.78 percent at 1,063.03 points on Friday.

----------------------MARKET SNAPSHOT @ 2247 GMT ------------
INSTRUMENT LAST PCT CHG NET CHG
S&P 500 <.SPX> 735.09 -2.36% -17.740
USD/JPY 97.66 -0.04% -0.040
10-YR US TSY YLD 3.0205 -- 0.000
SPOT GOLD 939.9 0.00% 0.000
US CRUDE 44.76 0.00% -0.460
DOW JONES <.DJI> 7062.93 -1.66% -119.15
ASIA ADRS <.BKAS> 78.85 -0.66% -0.52
-------------------------------------------------------------
MARKET SUMMARY
*U.S. economy plummets; Q4 drop biggest since 1982
[nN27328979]
*Oil pulled lower by dismal U.S. GDP data [nSIN461583]
*Dollar gains on safe-haven bid after weak US data
[nN27426251]
*Treasury bond prices mixed after stocks recover [nN27442831]

STOCKS TO WATCH

LOTTE SHOPPING <023530.KS>
Lotte Shopping said late on Friday that it aims to post 11.7
trillion won in sales this year, up 6.7 percent from a year ago.
- - - -
BANKS
Fourteen South Korean banks including Kookmin, Shinhan and
Woori have applied for a combined 12.3 trillion won ($8 billion)
in new capital from a $13 billion recapitalisation fund the
government is set to launch next month, a financial watchdog said
on Friday.[nSEO222224]

(Reporting by Jungyoun Park; Editing by Jonathan Hopfner)
((jungyoun.park@reuters.com; +82 2 3704 5643; Reuters Messaging;
jungyoun.park.reuters.com@reuters.net))
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