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5 years ago
Seoul shares rebound before G7, poised to snap 4-day slump
June 5, 2012 / 2:52 AM / 5 years ago

Seoul shares rebound before G7, poised to snap 4-day slump

 * KOSPI up nearly 1 pct, recovers from near year low
 * Bargain hunting targets battered cyclical stocks
 * LG Elec rallies on improved Q2 handset, profit outlook
 By Joonhee Yu	
 SEOUL, June 5 (Reuters) - Seoul shares rebounded on Tuesday
morning from levels just above their low this year, poised to
snap a four-day losing streak as investors looked to the Group
of Seven industrialised nations to take decisive action in
tackling Europe's resurgent debt crisis.	
 The Korea Composite Stock Price Index (KOSPI) was up
0.96 percent at 1,800.26 points by 0236 GMT, recovering from a
two-and-a-half week closing low logged in the previous session
where shares also fell to their lowest intraday level in 2012.	
 "Investors are pinning their hopes on the G7 and the ECB
meetings and have taken on a bit of encouragement as well from
signs of a German policy shift, but we still need to see some
tangible results to say a bottom has been carved out in the
market," said Ham Sung-sik, an analyst at Daishin Securities.	
 Finance chiefs of the Group of Seven leading industrialised
powers will hold a special conference call for an emergency
discussion on the debt crisis in Europe on Tuesday, a sign of
heightened global alarm about strains in the single currency
bloc.   	
 Battered cyclical stocks, most notably shipyards,
outperformed peers on bargain hunting. Daewoo Shipbuilding &
Marine Engineering climbed 3.8 percent while Samsung
Heavy Industries advanced 3.3 percent.	
 Crude oil refiners recovered after oil prices snapped a
four-day slide to edge higher on Monday, with SK Innovation
 gaining 2 percent while S-Oil rose 1.5
percent.	
 The KOSPI 200 benchmark of core stocks was up 0.81
percent, with 163 out of its 200 listed components trading
higher to underscore broad gains in the market.	
 The star performer among blue-chip heavyweights was LG
Electronics, rallying 3.4 percent and on track to
snap a five-day losing streak as analysts cited its expanding
foothold in the smartphone market and rosy second quarter profit
outlook.	
 Investors will be on watch for any market cues and a much
needed confidence boost ahead of three major events this week:
the G7 conference call on Tuesday, the European Central Bank's
policy rate meeting on Wednesday and U.S. Fed Chairman Ben
Bernanke's congressional testimony on Thursday.	
	
 (Editing by Jacqueline Wong)	
 

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