Reuters: Financial Services and Real Estate: Seoul shares end at 3-mth low as Europe polls, US jobs weigh

Reuters: Financial Services and Real Estate Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

Seoul shares end at 3-mth low as Europe polls, US jobs weigh May 7th 2012, 08:04 Mon May 7, 2012 4:04am EDT * Cyclicals, financials battered by global risks * Offshore investors sell most net shares in 6 months * Telecoms post gains on dividend yield support By Joonhee Yu SEOUL, May 7 (Reuters) - Seoul shares ended at a three-month low on Monday, battered by concerns of a reversal in Europe's austerity drive after elections in France and Greece and weighed by weak U.S. jobs data which cast doubts over the pace of recovery in the economy. The Korea Composite Stock Price Index (KOSPI) fell 1.64 percent to close at 1,956.44 points. "It was a steep decline for a single session, but it's only off five percent from the annual high in March. The market hates uncertainty, but the U.S. data and a new administration in France does not pose a serious fundamental risk," said Kim Byung-yeon, an analyst at Woori Investment & Securities. Kim further added that technical support remains firm with the 1,950 level, hovering just above the 120-day moving average of 1,943.72 points, to provide stiff downside resistance. Shipbuilders and crude oil refiners underperformed, leading a broad decline in cyclical stocks. Samsung Heavy Industries plunged 6.4 percent while GS Holdings, the holding company of South Korea's second-largest crude refiner GS Caltex Corp, tumbled 6.1 percent. Financials took a beating from global risk aversion, as Korea Investment Holdings fell 6.2 percent while Mirae Asset Securities slumped 4.8 percent. Foreign investors dumped a net 470.5 billion won ($415.8 million) worth of shares on the market, the largest single-day selling session by offshore players in six months. In France, Socialist Francois Hollande swept to victory in France's presidential election on Sunday over incumbent Nicolas Sarkozy, a key advocate of Angela Merkel's fiscal compact, in a swing to the left signaling the beginning of a pushback against German-led austerity policies. Greek voters enraged by economic hardship caused by the terms of an international bailout turned on ruling parties in an election on Sunday, putting the country's future in the euro zone at risk and threatening to revive Europe's debt crisis. On Friday, weaker-than-expected U.S. jobs data added to global risk aversion, raising concerns that the world's largest economy may be stalling in its path of recovery. Auto shares rallied in late trade to reverse early losses, with KIA Motors edging up 0.8 percent while Hyundai Motor Co ticked 0.2 percent higher. "Again we are seeing the valuation gap widen between blue chip consumer exporters and growth-sensitive laggards. Technology and automobile will be at the heart of the post-correction rally once more, but China-related underperformers need to pick up some slack to break through the ceiling," said Kim. Chinese data due this week could offer investors a clearer view on where the world's second-largest economy is headed, with Beijing expected to post April trade data on Thursday while inflation, industrial output and retail sales are due on Friday. Some defensive plays rallied, as telecom counters posted lone gains to buck the wider trend, lifted by dividend yield support following a recent cycle of declines. SK Telecom, South Korea's largest mobile service provider, climbed 3.4 percent while KT Corp, the country's second-largest carrier, rallied 5.9 percent. Some 528.6 million shares exchanged hands in the main bourse, while losing shares outnumbered winners 622 to 204. The KOSPI 200 index fell 1.77 percent while the junior KOSDAQ index shed 0.72 percent. Move on day -0.3 percent 12-month high 2,192.83 8 July 2011 12-month low 1,644.11 26 Sept 2011 Change on yr +8.95 percent All-time high 2,231.47 27 April 2011 All-time low 93.10 6 January 1981 ($1 = 1131.4500 Korean won) (Reporting by Joonhee Yu; Editing by Jacqueline Wong) Link this Share this Digg this Email Reprints

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions