Reuters: Financial Services and Real Estate: Seoul shares up, poised to end 3-day slide on China PMI

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Seoul shares up, poised to end 3-day slide on China PMI Apr 2nd 2012, 02:48 Sun Apr 1, 2012 10:48pm EDT * KOSPI looks to snap 3-day skid on China PMI data * Investors pick up on March underperformers By Joonhee Yu SEOUL, April 2 (Reuters) - Seoul shares edged up on Monday, poised to snap a three-day losing streak as a surprise acceleration in China's manufacturing activity in March eased worries of a slowdown in South Korea's biggest trading partner. The Korea Composite Stock Price Index (KOSPI) was up 0.45 percent at 2,023.05 points as of 0135 GMT. "Although there was some discrepancy between China's official PMI data and prior data released by HSBC, the skeptics' view was already priced in when the latter was released and investors are buying low on sectors that were subject to exaggerated falls as a result rather than moving on the latest news itself," said Kim Soo-young, an analyst at KB Securities. China's big factories were surprisingly busy in March as a stream of new orders lifted activity to an 11-month high, but credit-constrained smaller manufacturers struggled, suggesting that the economy is still losing steam. Bargain-hunters picked up steel shares, extending Friday's gains and leading peers on Monday morning after a lackluster March. POSCO, the world's third-largest steelmaker, gained 1.18 percent while Hyundai Steel advanced 2.94 percent. Steel producers, heavily reliant on demand from China, were one of the highlight underperformers in the month of March after being rocked by worries of slowing growth in that country, with the KRX Steels sub-index declining 8.4 percent during the period. Bargain bids were also seen in other China-related counters, most notably shipbuilders, the top loser in March when the KRX Shipbuilding sub-index saw 10.3 percent of its value wiped off the books. Samsung Heavy Industries rose 2.25 percent while STX Offshore & Shipbuilding was trading 1.4 percent higher. Analysts say the market is still in limbo and lacking a clear general direction aside from corrections and adjustments in individual sectors. "Sectors that have underperformed are being snapped up on attractive valuations while recent outperformers are being sold on profit-taking. Share prices are being fine-tuned to better line up with their earnings forecasts," said Kim. "But until the actual figures are released and investors are able to compare the results to their prior expectations, the preview season is no longer a source of major momentum," he added. (Reporting by Joonhee Yu; Editing by Matt Driskill) Link this Share this Digg this Email Reprints

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