NSE NIFTY TIPS (APR 12)

KOSPI FALLS TO 1-MONTH LOW; N.KOREA ROCKET LAUNCH EYED

Date: 12/04/2012

Seoul shares fell to a fresh one-month intraday low on Thursday, weighed down by foreign selling as investors cashed in on blue-chips following a lengthy, earnings-backed rally with focus seen moving beyond first-quarter results.

South Korean financial markets re-opened after closing on Wednesday for nationwide parliamentary elections.

The Korea Composite Stock Price Index ( KOSPI) was down 0.87 percent at 1,977.10 as of 0225 GMT, just above a session low and four-week trough of 1,973.25 points touched earlier in the session.

"Rising tensions over Spain's debt aside, large-cap, preferred stocks have clearly run out of steam after recent results, with concerns over North Korea's rocket launch also dumping cold water on foreign investors' risk appetite," said Ham Sung-sik, an analyst at Daishin Securities.

Investors are on cautious footing over resurfacing concerns over Spain's fiscal health as well as Italy despite comments from a European Central Bank official expressing optimism on Spain and hinting at a bond-buying intervention should it become necessary.

Impoverished North Korea rejected international protests over what its neighbors say is a disguised ballistic missile test, announcing on Wednesday it was in the process of fuelling the rocket. According to experts, this indicates that the rocket, which the North says is carrying a satellite, could be launched as early as Thursday.

Blue-chip technology and automobile shares were the target of persistent profit-taking, with the KRX Automobile and IT sub-indexes poised for their fourth consecutive losing session after an earnings-driven surge in March and early April.

Tech-giant Samsung Electronics Co Ltd fell 3.1 percent while rival LG Electronics Inc slid 3.5 percent.

Hyundai Motor Co declined 2.5 percent while parts-making subsidiary Hyundai Mobis was trading 2.8 percent lower.

Investors continued to seek bargains in recent laggards, helping energy and petrochemical shares outperform. SK Innovation, South Korea's largest crude oil refiner, rose 1.5 percent while LG Chem, the country's biggest chemical maker, gained 1.7 percent.

Aluminum producer Alcoa Inc started the U.S. earnings season on a high note by posting a surprise upswing out of the red in the first-quarter, lending support to material shares on hopes of improving global market conditions.

POSCO, the world's third-largest steelmaker, rose 1.2 percent while Hyundai Steel gained 2.9 percent.

Foreign investors dumped a net 183.3 billion won ($160.8 million) worth of shares as of 0225 GMT, poised for their heaviest selling session in over a month.

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