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Seoul shares rangebound; shipyards, banks outperform
Reuters - Monday, August 9
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* Institutional buying helps KOSPI
* Shipbuilders outperform on order news
By Jungyoun Park
SEOUL, Aug 9 - Seoul shares were rangebound on Monday, paring earlier losses on disappointing U.S. payroll data, as investor hopes for further stimulus measures from the Federal Reserve strengthened ahead of its meeting on Tuesday.
The Korea Composite Stock Price Index <.KS11> was up 0.14 percent at 1,786.29 points as of 0129 GMT.
"The U.S. payroll data was weak but hopes for further stimulus measures ahead of the U.S. Fed meeting are growing," said Bae Sung-young, a market analyst at Hyundai Securities.
The Federal Reserve on Tuesday may send a clear signal it is prepared to print more money to support a faltering economic recovery if necessary.[ID:nN06209685]
"The market will be pretty much rangebound around its 10-day moving average until the end of the Fed meeting," Bae added.
The KOSPI's 10-day moving average is about 1,778 points.
Foreign investors were sellers of a moderate 6 billion won worth of stocks, while institutions were buyers of a net 30.7 billion won.
Shipbuilders outperformed, buoyed by news of a 294 billion won drillship order from STX Offshore & Shipbuilding <067250.KS>.
STX Offshore gained 2.6 percent and Daewoo Shipbuilding & Marine Engineering <042660.KS> rose 3.3 percent.
Shares in POSCO <005490.KS> declined amid concerns about the world's No.3 steelmaker's second half outlook and its Indian steel mill project.
"As the company itself mentioned in its results announcement, its second half outlook is not so good," said Lee Jae-won, an analyst at SK Securities.
The chief minister of the Indian state of Orissa has appealed to the prime minister to allow POSCO to continue work on a giant iron ore project after the environment ministry ordered a halt.[ID:nSGE67600L]
"I do not think the appeals have made investors any more optimistic about the project. Delays have been dragging on for years now," Lee added.
POSCO shares retreated 1.2 percent.
Banking stocks outperformed. Shares in KB Financial Group <105560.KS> were up 1.8 percent and Shinhan Financial Group <055550.KS> rose 1.3 percent.
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