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Seoul shares edge down as Samsung, EU details weigh
July 2, 2012 / 7:16 AM / in 5 years

Seoul shares edge down as Samsung, EU details weigh

* Summit agreement shores up sentiment, questions remain
    * Samsung Elec falls 2.3 pct on smartphone sale concerns
    * LG Int'l soars 6.8 pct on $212 mln Indonesia coal mine
deal

    By Joonhee Yu
    SEOUL, July 2 (Reuters) - Seoul shares gave up modest early
gains to close a touch weaker on Monday, weighed down by losses
in index heavyweight Samsung Electronics and concern
about a lack of details on a European deal to aid the region's
banks.
    The Korea Composite Stock Price Index (KOSPI) fell
0.13 percent to close at 1,851.65 points.
    Samsung Electronics, which accounts for 17 percent of the
KOSPI's total market capitalisation, fell 2.3 percent as
analysts cited worries about disappointing smartphone sales in
the wake of a downturn in the global economy.
    "Despite the slim losses, sentiment has tilted towards the
upside with investors relishing the prospect of a rate cut by
the European Central Bank and fresh talks of more stimulus from
the Federal Reserve if Friday's jobs data turns out to be soft,"
said Gwak Jung-bo, an analyst at Samsung Securities.
    The European Central Bank will hold a policy meeting on
Thursday and a majority of economists polled by Reuters expect a
rate cut.
    Euro zone leaders agreed on Friday to directly inject
bailout funds into cash-strapped regional banks if necessary and
intervene in bond markets to ease the pressure of soaring debt
costs in Spain and Italy, but shades of doubt appeared amid
broad market cheers.
    "There are questions remaining to be answered, among which
is whether the ESM (European Stability Mechanism) in its current
capacity is large enough to shore up banks as promised," said Oh
Seung-hoon, an analyst at Daishin Securities.
    Also taking some shine off the summit agreements was data
showing China and Japan's factory output sagging to a
seven-month low, a bitter reminder of the weakened global
economy after the ravages of the euro zone debt
crisis. 
    Laggard crude oil refiners outperformed on bargain-hunting.
SK Innovation S-Oil both rose 2.5
percent.
    Shares in LG International jumped more than 6.8
percent on Monday after the South Korean trading house said it
had acquired a 242.8 billion won ($212 million) stake in an
Indonesian coal mine, announced via a regulatory filing on
Friday. 
    Foreign investors snapped a six-day selling streak, as
offshore players rode recovering sentiment to buy a net 39.7
billion won ($34.7 million) worth of shares.
    The KOSPI 200 benchmark of core stocks fell 0.18
percent and the junior, while the tech heavy KOSDAQ 
edged up 0.26 percent. Winning shares on the main bourse
outnumbered losers 469 to 344.

        Move on day                -0.13 percent            
        12-month high   2,192.83   8 July 2011                  
        12-month low    1,644.11   26 Sept 2011                 
        Change on yr               +1.4 percent     
        All-time high   2,231.47   27 April 2011                
        All-time low       93.10   6 January 1981 
($1 = 1145.3500 Korean won)

 (Reporting by Joonhee Yu; Editing by Richard Pullin)

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