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Seoul shares halt 4-day slide ahead of G7 talks
June 5, 2012 / 7:18 AM / in 5 years

Seoul shares halt 4-day slide ahead of G7 talks

 * KOSPI up 1 pct, scales back above 1,800-point level
 * Bargain hunting targets battered resource counters
 * Airliners soar on cheaper jet fuel
 By Joonhee Yu	
 SEOUL, June 5 (Reuters) - Seoul shares rebounded to climb
back above 1,800 points on Tuesday, halting a four-day slide, 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) ended
1.05 percent higher at 1,801.85 points, 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.  	
 "Although Greece remains the overarching issue in the
market, investors felt (Monday's) falls were exaggerated given
there is still much to look forward to this week policy-wise,
looking at the events that are lined up," said Ham Sung-sik, an
analyst at Daishin Securities.  	
 Finance chiefs of the Group of Seven leading industrialised
powers will hold an emergency conference call to discuss the
debt crisis in Europe on Tuesday, a sign of heightened global
alarm about strains in the single currency bloc. 	
 Bearish sentiments may be tempered ahead of two other major
events lined up this week; the European Central Bank's policy
rate meeting on Wednesday and U.S. Fed Chairman Ben Bernanke's
congressional testimony on Friday.	
 Fears of financial market volatility were further tamed
after the South Korean financial authorities announced at an
emergency meeting on Tuesday that they would strengthen their
monitoring of the markets in light of recent stresses from
global jitters.	
 Battered cyclical stocks, most notably resource counters,
outperformed peers on bargain hunting. Korea Zinc 
rallied 5.9 percent while Young Poong climbed 4.9
percent.	
 With crude oil prices still hovering closely above a
16-month low despite a two day rebound, airliners soared on
lower jet fuel expenses. Korean Air, South Korea's
flagship passenger and cargo carrier, rose 4.5 percent while its
rival Asiana Airlines gained 5.4 percent.	
 The KOSPI 200 benchmark of core stocks was up 1.1
percent, with 158 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 4.7 percent to snap a five-day
losing streak as analysts cited its expanding foothold in the
smartphone market and rosy second quarter profit outlook.  	
 Despite the gains, the prevailing atmosphere in the market
was one of caution ahead of key policy events, with trading
choppy and offshore players seen continuing to reduce their
exposure to local shares.	
 Foreign investors dumped a net 341.8 billion won ($289.2
million) worth of stocks for a fourth-straight selling session
and the heaviest one-day sell-off in two-and-a-half weeks,
although offset by institutional buyers who picked up a net
391.8 billion won worth to underpin the market.	
 Daily turnover was seen at 3.48 trillion won, the thinnest
single-day volume in more than five months.	
 South Korean financial markets will be closed on Wednesday
in observance of Memorial Day.	
	
        Move on day                +1.05 percent             
  	
        12-month high   2,192.83   8 July 2011               	
        12-month low    1,644.11   26 Sept 2011              	
        Change on yr               -1.31 percent             
 	
        All-time high   2,231.47   27 April 2011             
 	
        All-time low       93.10   6 January 1981  
($1 = 1181.9500 Korean won)	
	
 (Editing by Jacqueline Wong)	
 

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