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Seoul shares end 3-day rally; China-linked shares lead fall
May 30, 2012 / 8:02 AM / 6 years ago

Seoul shares end 3-day rally; China-linked shares lead fall

* Dashed hopes for China stimulus hit growth-linked shares
    * KOSPI claws back some early losses on chart support
    * Keystone Global plunges 15 pct on cash crunch worries

    SEOUL, May 30 (Reuters) - Seoul shares edged down on
Wednesday to snap a three-day winning run, pressured by mounting
worries over Spain's ailing banks and dashed hopes of aggressive
stimulus action by China, although the index pared some earlier
losses on technical support.	
    Growth-sensitive sectors that rely on Chinese demand
underperformed, led by shipping liners and petrochemicals firms.	
    The Korea Composite Stock Price Index (KOSPI) closed
down 0.27 percent at 1,844.86 points, after losing as much as
1.1 percent in the morning.	
    "Following a sharp correction, the market is starting to
show some firm downside support," said Kim Seung-han, an analyst
at HI Investment & Securities.	
    The KOSPI is down 6.9 percent so far in May. It has regained
some ground in recent sessions after dropping more than 10
percent for the month to a 2012-low on renewed flare-ups in the
euro-zone debt crisis and signs of economic slowdown in the
United States and China.	
    But a further rebound may be limited by worries over Spain's
rising borrowing costs and bank woes, while remarks by Chinese
academics and state officials cautioning against excessive
government investment dampened hopes that Beijing would launch
an aggressive stimulus plan. 	
    Among China-reliant sectors, Hyundai Merchant Marine
 fell 3 percent and SK Chemicals slid 3.3
    Keystone Global Co Ltd plummeted 14.9 percent
after local media reports said the company was buying a $480
million stake in a U.S. coal mine, triggering worries of a cash
crunch. Keystone said in a filing that the acquisition has not
been decided on yet.	
    Foreign investors turned net sellers again, after snapping a
19-day capital exodus in the previous session. Offshore players
sold a net 22.1 billion won ($18.8 million) worth of shares on
    Trading remained choppy, with 399.3 million shares worth 3.6
trillion won changing hands. Losing shares outnumbered winners
516 to 305.	
    The KOSPI 200 index of core stocks edged 0.24
percent lower while the junior, small-cap heavy KOSDAQ 
ticked down 0.09 percent.	
    Investors will be look1ing to a slew of data scheduled for
release on Friday for fresh near-term catalysts before the Greek
elections on June 17, including U.S. May employment and Chinese
factory output.	
           Move on day                -0.27 percent             
           12-month high   2,192.83   8 July 2011               	
           12-month low    1,644.11   26 Sept 2011              	
           Change on yr               +1.05 percent             
           All-time high   2,231.47   27 April 2011             
           All-time low       93.10   6 January 1981 	
($1 = 1174.8000 Korean won)	
 (Reporting by Joonhee Yu; Editing by Chris Gallagher)

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