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Wednesday August 8, 7:12 AMSeoul shares may rise on Fed, exporters seen upSEOUL, Aug 8 (Reuters) - Seoul shares could gain on Wednesday after Wall Street rose on the Federal Reserve's view that troubles with subprime mortgages would not drag on the broader economy, potentially lifting exporters like LG Electronics.The Federal Reserve held benchmark U.S. interest rates steady and said despite tightening credit conditions it believed the economy was sound, easing worries about a credit crunch in South Korea's second-biggest export market. [ID:nN07214742] "It looks like the Fed delivered the best possible statement to relieve the market. While touching on the credit issue, it maintained a positive economic outlook," Kim Joong-hyun, an analyst at Goodmorning Shinhan Securities. "That could improve investor sentiment somewhat, though the pace of any recovery will be slow due to heavy foreign selling." Recently battered financial stocks such as Kookmin Bank and exporters such as LG Electronics Inc. may gain some ground. The main index has fallen 7.7 percent since hitting a record 2,015.48 on July 26, hit by worries that a U.S. subprime mortgage crisis would limit the availability of credit and leave some funds exposed to soured investments. Foreign investors have been heavy sellers, unloading a net 461.1 billion won ($499.7 million) in the KOSPI on Tuesday to mark their 17th consecutive session of net sales. STOCKS TO WATCH - Daewoo Engineering & Construction Co. South Korea's most profitable builder on Tuesday raised forecasts for 2007 orders on strong demand for plants and said it was looking at foreign engineering firms for possible takeovers. [ID:nSEO330332] - Steel makers Shares in POSCO Co. Ltd. and other domestic steel makers may gain after JFE Holdings Inc. told Reuters it expected the market to stay firm in October-March, with high steel prices more than offsetting surging raw material costs. [ID:nT59833] PREVIOUS CLOSE The benchmark Korea Composite Stock Price (KOSPI)) rose 0.26 percent to 1,859.82 points, paring earlier gains of as much as 1.8 percent. The September KOSPI 200 futures index rose 1 point to 234.50, while the underlying KOSPI 200 spot index advanced 0.58 point to 234.50. The junior and tech-heavy Kosdaq market rose 0.63 percent to finish at 800.83. The Dow Jones industrial average rose 0.26 percent to 13,504.30, while the tech-heavy Nasdaq composite gained 0.56 percent to end at 2,561.60. |
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