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Seoul shares seen down
Fri, Jul 03, 2009
Reuters

SEOUL, SOUTH KOREA - Seoul shares are likely to open lower on Friday after falls overnight on Wall Street and bleak U.S. job data, with news of North Korea's firing of short-range missiles likely to weigh further on sentiment.

'Shares cannot start well today,' said Choi Seong-lak, a market analyst at SK Securities, adding the weakness in U.S. payroll data was hurting hopes for an economic recovery.

'The slide in U.S. shares does not bode well for Seoul market either,' Choi said.

U.S. employers cut 467,000 jobs in June, far more than expected while the unemployment rate rose to 9.5 percent, the U.S. government said on Thursday, in a report that showed a labor market continuing to struggle with a deep recession.

'North Korea's firing of short-range missiles is another negative, though I do not expect a drastic windfall in shares for that. Investors will probably react fairly calmly, as they have so far,' Choi said.

North Korea test-fired four short-range missiles on Thursday, further stoking already high regional tension due to its nuclear test and threats to boost its nuclear arsenal in responses to UN sanctions.

The Korea Composite Stock Price Index (KOSPI) finished flat, down 0.01 percent at 1,411.48 points on Thursday.

 

 

 

 
 
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