May 30, 2012 / 3:27 AM / 5 years ago

Seoul shares fall over 1 pct, poised to snap 3-day rally

* Growth-sensitive crude refiners, builders drag
    * Keystone Global plunges 11 pct on cash crunch worries

    By Joonhee Yu	
    SEOUL, May 30 (Reuters) - Seoul shares retreated on
Wednesday, tracking losses in regional peers and poised to snap
a three-day winning run as a technical rebound lost steam,
despite some hopes for additional economic stimulus by China.	
    With the benchmark index down 7.7 percent in May, investors
are expected to look to a slew of data scheduled for release on
Friday, including U.S. May jobs and Chinese factory output, for
fresh near-term catalysts before Greek elections on June 17. 	
    The Korea Composite Stock Price Index (KOSPI) was
down 1.07 percent at 1,830.16 points as of 0215 GMT.	
    "From a technical point of view, there is still a large
chart gap left to be filled with further gains, but the market
is just too short on confidence to make further headway," said
Lee Jin-woo, an analyst at Mirae Asset Securities.	
    The KOSPI is trading more than 3 percent lower than the
closely watched 20-day moving average at 1,887.80 points.	
    Offshore investors were seen cutting back on risk exposure
once more after snapping a 19-session selling run in the
previous session that followed a public holiday on Monday.
Foreign investors offloaded a net 75.9 billion won ($64.6
million) worth of shares on Wednesday morning.	
    Laggard, growth-sensitive sectors such as crude oil refiners
and builders underperformed as talks of further easing in China
failed to ignite a rally.	
    The official Shanghai Securities News reported on Tuesday,
citing unidentified sources, that China's biggest banks appeared
to have accelerated lending toward the end of May as Beijing
started to fast-track approvals of infrastructure investments in
an effort to stem sagging growth. 	
    "The market has been waiting months for additional stimulus
measures in China and it has been priced in accordingly.
Sentiment is still being dominated by the overhanging
uncertainty in Europe," said Lee.	
    Key decliners included S-Oil Corp, South Korea's
third-largest crude refiner, which fell 1.8 percent, while
Hyundai Engineering & Construction Co Ltd shed 2
percent.	
    STX affiliates retreated across the board on profit-taking
after a sharp, broad rally on Tuesday following reports of a
financial restructuring plan to alleviate its cash-strapped
conglomerate parent STX Group.	
    STX Corp fell 3 percent, while STX Pan Ocean Co
Ltd declined 3.1 percent. 	
    Keystone Global Co Ltd plunged more than 11
percent after local media reports said it was acquiring a $480
million stake in a U.S. coal mine, sparking concern over a
possible cash crunch.	
  ($1 = 1174.8000 Korean won)	
	
 (Reporting by Joonhee Yu; Editing by Chris Lewis)

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