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Seoul shares rangebound; banks rebound, Kumho falls
 
 
  
 
 Reuters - Monday, January  4
 
 
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* KOSPI trades flat; institutions, foreign investors buy
 
* Retail investors sell
 
* Samsung Card declines after stake sale rumour
 
By Jungyoun Park
 
SEOUL, Jan 4 - Seoul shares traded in a tight range on the first trading day of the new year on Monday, with banks rebounding after recent losses, but Kumho Asiana Group related stocks continuing to retreat amid financial health fears.
 
The main KOSPI index was rangebound amid a lack of strong buying appetite, as investors sought clearer signs of where economies and corporate earnings are headed this year, analysts said.
 
"Investors want to check key economic data coming out in the earlier part of this month before making fresh bets this year. Eyes are also on corporate earnings guidance ahead of the fourth quarter earnings season," said Lee Kyoung-su, a market analyst at Taurus Investment & Securities.
 
The Korea Composite Stock Price Index <.KS11> was up 0.08 percent at 1,684.17 points as of 0227 GMT.
 
Institutions and foreign investors were buyers of a net 24.3 billion won and 57.3 billion won respectively, but retail investors were sellers of a net 97 billion won.
 
Markets opened an hour later than usual at 0100 GMT, and will close at the normal time of 0600 GMT.
 
Shares related to Kumho Asiana Group continued to fall after Kumho Industrial <002990.KS> and Kumho Tire <073240.KS>, its two flagship companies, were put under creditor-led restructuring, prompted by cash shortages from the conglomerate's previous expansion. [ID:nTOE5BS074]
 
The Korea Exchange on Monday halted trading of Kumho Tire stocks and asked the tire maker to clarify rumours of its bankruptcy.
 
Shares in Kumho Industrial plunged 14.89 percent.
 
But banks bounced after big losses in recent sessions on worries about their exposure to Kumho Asiana Group.
 
Woori Finance Holdings <053000.KS> was up 2.17 percent and Shinhan Financial Group <055550.KS> advanced 2.08 percent.
 
Shares in KB Financial Group <105560.KS> lagged its peers, rising a mere 0.3 percent, after news the chairman-elect of the group, the parent of South Korea's top bank Kookmin, resigned from the nomination.[ID:nTOE5BU03K]
 
Samsung Card <029780.KS> underperformed after market talk a stake in the firm held by Samsung Life may be sold to Shinsegae Co Ltd <004170.KS>, South Korea's top retailer by market value.
 
Samsung Card denied the rumours in a filing to the Korea Exchange.
 
Samsung Life controlled 26.4 percent of Samsung Card according to a regulatory filing last August.
 
Samsung Card was down 3.65 percent and Shinsegae retreated 0.56 percent.
 
 
 
 
   
 
 
 
 
 
 
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