SEOUL, June 28: Seoul shares were poised to snap a five-day losing streak after decent US economic data, though
gains will likely be capped as investors retreat to the sidelines ahead of a key summit in Europe.
The Korea Composite Stock Price Index (KOSPI) had climbed 0.36 percent to 1,824.16 points by 0648 hrs IST in choppy, rangebound trade.
European Union leaders go into a two-day meeting in Brussels more openly divided than at any time since the debt crisis erupted in Greece in 2010, with German Chancellor Angela Merkel putting up fierce resistance to a proposal for commonly issued bonds.
‘Investors are expecting to be disappointed and this sentiment has been priced into shares already in the last few
sessions, so there’s little room for more correction even if the summit yields no tangible results,’ said Bae Sung-yung, an
analyst at Hyundai Securities.
Bae expects the main bourse to stay in a narrow 1,800-1,900 range for the time being, with no major events that could impact the global economy scheduled in the immediate aftermath of the EU summit.
Investor sentiment was boosted by data showing a sharp rebound in demand for long-lasting U.S. Manufactured goods, while a gauge of planned business spending increased and pending home sales rose in May.
But nearly a third of the way into the session, only 918 billion won ($794 million) worth of shares, had exchanged hands.
That is around 25 percent of the average daily turnover in June.
Offshore investors were net sellers for a fifth-straight session, with a net 23.6 billion won worth of foreign-held shares sold.
Laggard shipping liners led the morning gains on higher freight rates, with Hanjin Shipping Holdings rising 1.7 percent, while CJ Korea Express advanced 2 percent.
($1 = 1156.2250 Korean won)
(agencies)
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