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Seoul shares trade narrowly after touching 38-mth high
Reuters - Wednesday, December 22
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* KOSPI rangebound after hitting 38-month high
* Vaccines, seafood rally as foot-and-mouth disease spreads
* Banks, brokerages edge lower, take breather after rally
SEOUL, Dec 22 - Seoul shares traded within a tight range on Wednesday after hitting a 38-month high during the session, with brokerages and banks losing ground after their recent rally.
The Korea Composite Stock Price Index <.KS11> was up 0.12 percent at 2,039.58 points as of 0200 GMT after hitting a 38-month high of 2,045.39 points earlier in the session.
"Upside momentum has weakened slightly following recent gains that pushed the main index to a high. However the momentum is still alive on expectations of further gains next year," said Samsung Securities market analyst Hwang Keum-dan. "Investors are now taking a rotational approach, taking turns betting on different sectors to seek extra room for gains or locking in profit on issues that have already risen."
Vaccine makers jumped after the Ministry for Food, Agriculture, Forestry and Fisheries said it was considering giving free vaccine shots as part of efforts to contain an outbreak of foot-and-mouth disease.
Choong Ang Vaccine Laboratory Co Ltd <072020.KQ> and Cheil Bio Co Ltd <052670.KQ> both jumped nearly 15 percent.
Seafood processors also gained on expectations consumers will avoid beef products. Dong Won Fisheries Co Ltd <030720.KS>, a leading producer of canned tuna, was up 3.1 percent and Sajo Oyang <006090.KS> gained 1.7 percent.
CJ Cheiljedang Corp <097950.KS>, a processed food and sugar manufacturer, rose 2.1 percent on media reports it was considering raising prices of its sugar by nearly 10 percent.
A company spokesman declined to confirm the report, but said the company had earlier planned a 15 percent price increase to reflect a rise in raw materials prices.
Makers of sugary snacks underperformed, with Lotte Confectionary Co Ltd <004990.KS> down 0.6 percent and Lotte Samkang Co Ltd <002270.KS> off 0.2 percent.
Hynix Semiconductor Inc <000660.KS>, the world's No.2 memory chip maker, slipped 1.3 percent after data from DRAMeXchange, an industry tracker, showed spot prices of key DRAM chips had fallen by as much as 1.2 percent.
Retail issues traded firm, buoyed by a rosy fourth-quarter earnings outlook and strong year-end shopping activity.
"Department stores are expected to post high single-digit sales growth in the fourth quarter compared with a year earlier, and this will feed into their quarterly earnings," said Tong Yang Securities analyst Han Sang-hwa.
Lotte Shopping Co Ltd <023530.KS>, South Korea's No.1 retailer, operating department and discount store chains, rose 1.6 percent. Shinsegae Co Ltd <004170.KS>, the country's No. 2, rose 1.4 percent.
Banking stocks took a breather after their recent rally, with Shinhan Financial Group Co Ltd <055550.KS> down 1.5 percent and Woori Finance Holdings Co Ltd <053000.KS> down 0.6 percent.
Brokerages also inched lower. Samsung Securities Co Ltd <016360.KS> declined 0.1 percent and Woori Investment & Securities Co Ltd <005940.KS> shed 0.4 percent.
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