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Seoul shares slip as autos decline; banks advance
Reuters - Thursday, September 3
* KOSPI pressured by foreign investors' selling
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* Banks lend support, led by Woori Finance
* Auto makers retreat; Hyundai down after hitting record high
By Jungyoun Park
SEOUL, Sept 3 - Seoul shares slipped on Thursday with automakers such as Hyundai Motor <005380.KS> retreating following strong gains, but banking issues such as Woori Finance Holdings <053000.KS> lent the market support.
As of 0129 GMT, the Korea Composite Stock Price Index <.KS11> was down 0.5 percent at 1,612.39 points.
"Share are under pressure after losses overnight on Wall Street, with caution prevailing ahead of key economic data including U.S. job data coming out later this week," said Kim Seung-han, a market analyst at HI Investment Securities, adding that foreign buying had slowed.
But banking issues rose led by Woori Finance Holdings after it said on Thursday it was considering investing in Blackstone Group's private equity fund at the U.S. group's request. [ID:nSEL000759]
"Blackstone is a top private equity name, and the fact that Woori may be investing with it is not negative. It may allow Woori to do deals that it would not have been able to do by itself," said Ku Yong-uk, an analyst at Daewoo Securities.
"Banking issues are rebounding following their recent declines, and as their second half earnings are seen improving," said Lee Hyeok-jae, an analyst at IBK Securities.
KB Financial Group <105560.KS> was up 1.7 percent and Hana Financial Group <086790.KS> also rose 4.07 percent.
But automakers retreated following their latest set of rises, with Hyundai Motor falling 3.91 percent after hitting its historical high in the previous session, while Kia Motors <000270.KS> shed 2.77 percent.
Hyundai Steel <004020.KS> advanced 2.45 percent to 79,400 won after Morgan Stanley boosted its target price on the South Korean steelmaker by 17 percent to 92,000 won. POSCO <005490.KS>, the world's No.6 steelmaker, also gained 1.43 percent.
Daewoo International <047050.KS> outperformed, rising 0.16 percent, helped by news late on Wednesday that a consortium led by the energy development firm will invest 4 trillion won ($3.2 billion) to develop a Myanmar gas field. [ID:nSEO182704]
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