SKorean shares trim gains ahead of central bank meeting

SKorean shares trim gains ahead of central bank meeting

	Published : Tue, 10 Jul 2007 05:51 By : Agencies Print this Story

SEOUL (Thomson Financial) - South Korean shares cut gains in afternoon trading Tuesday as investors started pocketing profits after

the key KOSPI index struck a new record earlier in the session after the central bank upgraded its economic forecast.

Some investors stayed on the sidelines ahead of the Bank of Korea's monetary policy meeting on Thursday and the release of corporate quarterly results.

At 1.06 pm (0406 GMT), the KOSPI index was up 2.68 points or 0.14 percent at 1,886.27.

The KOSPI hit a new trading high of 1,895.27 earlier after the BoK said that it now expects South Korea's gross domestic product to grow by 4.5 percent in 2007, instead of its earlier estimate of 4.4 percent, because of strong exports and modest recovery in domestic demand.

'The upside momentum seems to have eased a bit as investors turned cautious ahead of the rate meeting,' said Hyundai Securities analyst Kim Young-Gak.

The market is split on what the central bank may decide to do on Thursday although most analysts are looking at an interest rate hike.

Kim said a lackluster performance by Samsung Electronics, which has been a key driver of the recent

market rally, is also weighing on sentiment. Samsung is scheduled to release its second-quarter results on Friday.

Volume traded reached 260 million shares worth 4.0 trillion won.

Falls outpaced rises 394 to 366.

Retail investors were net buyers of shares worth 72.1 billion won while institutional and foreign investors were net sellers of 47.8 billion won and 41.9 billion won worth, respectively.

SK Telecom jumped 8,500 won or 4.22 percent to 210,000 won on a report that it is seeking to take

control of US mobile phone service provider Sprinter Nextel.

KEPCO rallied 1,500 won or 3.53 percent to 44,050 won on expectations that the state-run Korea Deposit Insurance Corp will sell a five percent stake in the power company soon. Analysts also said attractive valuation as well as hopes for possible sale of shares in KEPCO units is driving the stock higher.

Shinhan Financial rose 2,300 won or 3.83 percent to 62,400 won on a report that it may invest some 100 million US dollars in Vietnamese bank Vetcom Bank when the latter goes public in August or September.

LG Philips LCD, meanwhile, dipped 250 won to 43,700 won due to caution ahead of the release this afternoon of its earnings for the three months to June.

(1 US dollar = 919.95 won)

saeromi.shin@thomson.com

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