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Friday March 23, 2:40 PM Seoul shares dip on oil, but Doosan Corp surges SEOUL, March 23 (Reuters) - Seoul shares fell 0.1 percent on Friday as a surge in oil prices hit energy cost-sensitives firms such as KEPCO, while exporters retreated on worries the won currency would strengthen against the Japanese yen. But some affiliates of equipment making conglomerate Doosan Group hit their latest records after Citigroup initiated coverage with buy ratings for four of the companies, while LG Household and Health Care Ltd. rose after UBS started covering the stock with a buy rating. "Although they have not been a big factor recently, oil prices and foreign exchange could again become potential problems, and the markets will focus on them," said Kim Jeong-hwan, an analyst at Woori Investment and Securities. "On the technical level, global markets have already gained quite a bit and that's another factor that's pressuring shares today," he added. The benchmark Korea Composite Stock Price Index (KOSPI) fell 0.08 percent to end at 1,447.38 points. The index rose 1.37 percent for the week, marking its third consecutive weekly gain, as waning risk aversion has sparked a recovery in global markets following a slump that started a few weeks ago. Some analysts expect the KOSPI to surpass a record 1,471.04 points hit on Feb. 23 as early as next week, led by the sectors that had outperformed before the global correction, mainly lenders and steel makers, as these are expected to post solid profits this year. "Although technology and exporters could be more volatile, this is going to be offset by gains in banks and steel makers and other sectors that have good earnings potential this year," said Kim Joong-hyun, an analyst at Goodmorning Shinhan Securities. OIL GAINS HURT Firms sensitive to oil prices fell after U.S. crude futures surged more than 3 percent overnight as a fall in U.S. gasoline stocks fuelled concerns of tight supplies. Power provider Korea Electric Power Corp. fell 1.05 percent to 37,600 won, while carrier Asiana Airlines Inc. dropped 2.29 percent to 6,400 won. Rising oil prices can have a particularly negative effect on South Korea, which must import all its oil needs. Exporters gave up early gains after the South Korean won strengthened against the Japanese yen, raising worries about losing competitiveness in key global rivals. Auto maker Hyundai Motor Co. fell 0.89 percent to 66,700 won, while chip maker Samsung Electronics Co. Ltd. lost 0.34 percent to 580,000 won. But Doosan Group affiliates extended a rally this week after Citigroup initiated coverage of them with buy ratings, citing good earnings growth momentum, improving shareholding structure and improving financial health. [ID:nSEO151005] Holding company Doosan Corp. surged 10.27 percent to end at an all-time high of 80,500 won, while machinery maker Doosan Infracore Co. Ltd. rose 2.24 percent to 22,800 won after earlier hitting a record 23,100 won. LG Household rose 2.56 percent to 120,000 won after UBS initiated coverage of the household product maker with a buy rating, citing expectations for strong earnings growth. Foreign investors bought a net 79.7 billion won ($84.91 million) in shares on the main bourse, according to data at 0612 GMT. But retail investors sold a net 49.6 billion won, while institutional investors sold a net 79.5 billion won. Trade volume reached 270.7 million shares worth 2.8 trillion won compared to 301 million shares worth 3.6 trillion won on Thursday. Decliners edged out gainers by 396 to 366 with 78 titles ending flat. The June KOSPI 200 futures index ended unchanged at 188.60 points, while the underlying KOSPI 200 spot index fell 0.26 point to 186.89. South Korea's junior and tech heavy Kosdaq market fell 0.76 percent to finish at 640.89. Move on day -0.08 percent 12-month high 1,471.04 23 FEB 2007 12-month low 1,192.09 14 JUN 2006 Change on yr +0.90 percent All time high 1,471.04 23 FEB 2007 All time low 93.10 06 JAN 1981 ($1=938.6 Won)