Seoul shares rangebound;KEB jumps on Hana interest

Reuters - Monday, November 23

* KOSPI rangebound; foreign buying continues

* KEB advances on Hana Financial acquisition interest

* LG Elec underperforms on renewed rumour of Hynix interest

By Jungyoun Park

SEOUL, Nov 23 - Seoul shares were rangebound on Monday with gains in KEB <004940.KS> on Hana Financial's <086790.KS> interest in the bank adding support to markets, but losses in LG Elec <066570.KS> and carmakers weighed.

"The outlook for the economy is growing positive following the KDI report, and forex market movements are also steady. This will probably keep markets stable around their 60-day moving average," said Won Jong-hyuck, a market analyst at SK Securities.

The Korea Development Institute on Sunday forecast that Asia's fourth-largest economy would expand by 5.5 percent, the fastest since a 7.2 percent jump in 2002 and the highest forecast so far by major local and international agencies. [ID:nSEO263471]

The Korea Composite Stock Price Index <.KS11> was down 0.08 percent at 1,619.25 points as of 0121 GMT.

The main KOSPI's 60-day moving average was about 1,600 points, according Thomson Reuters data.

Korea Exchange Bank rallied after the chairman of Hana Financial Group told reporters late on Friday that the group could look at the country's No.6 commercial lender for an acquisition. [ID:nSEO270779]

KEB was up 4.4 percent after rising more than 5 percent to hit their highest in more than 17 months.

"The acquisition of KEB will help Hana become a bigger player in the domestic financial market ... KEB also has a solid overseas business network," said Ku Yong-uk, an analyst at Daewoo Securities.

Hana Financial was up 0.65 percent.

But LG Electronics <066570.KS> fell 1.85 percent amid renewed market talk and following local media reports the electronics giant may bid for Hynix Semiconductor <000660.KS>, the world's No.2 memory chip maker. Hynix was down 0.26 percent.

"There have been media reports about the possibility but it is simply rumour at this stage ... It is also true that LG Electronics is a well-suited suitor," said Cho Sung-eun, an analyst at KB Investment & Securities.

LG Electronics shares were further pressured by news on Sunday that Apple's <AAPL.O> iPhone would go on sale in South Korea this Saturday, offered by the country's No.2 mobile carrier KT Corp <030200.KS>. [ID:nSEO283549]

GS Engineering & Construction Co Ltd <006360.KS> rose 1.29 percent after the company said on Monday it had won an order related to the construction of a $520 million marine facility in the United Arab Emirates' Ruwais refinery project.

But carmakers declined, with Hyundai Motor <005380.KS> down 1.47 percent and Kia Motors <000270.KS> falling 1.98 percent. ((jungyoun.park@thomsonreuters.com; +82 2 3704 5643; Reuters Messaging: jungyoun.park.reuters.com@reuters.net)) ((If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com))