Seoul shares trade higher on steel, shipbuilder gains

SEOUL, Nov. 10 (Yonhap) -- South Korean stocks traded higher late Monday morning as gains of steel and shipbuilders outweighed worries stemming from a decision by Fitch Ratings to downgrade its outlook for the country's sovereign rating, analysts said.

The benchmark Korea Composite Stock Price Index (KOSPI) rose 15.56 points, or
1.36 percent, to 1,150.15 as of 11:20 a.m.
"The KOSPI started brisk following Wall Street gains, but it was weighed down by
Fitch Ratings' announcement to lower its outlook for South Korea's credit rating
in the morning session," said Lee Sun-yup, an analyst at Goodmorning Shinhan
Securities Co.
"But China-related shares gained ground, lifted by moves by China to stimulate
its slowing economy, sending the KOSPI higher."
Global credit appraiser Fitch Ratings said earlier in the day that it has lowered
its outlook for South Korea's sovereign rating from "stable" to "negative,"
reflecting the impact of the ongoing global financial turbulence on its economy.
But Fitch has affirmed its sovereign rating for South Korea at "A plus," its
fifth-highest grade.
Losses of automaker shares weighed on the market on concerns that U.S.
President-elect Barack Obama will likely protect his country's automobile
industry.
The local currency was trading at 1,327.20 won to the U.S. dollar as of 11:20
a.m., up 1.6 won from Friday's close.
sooyeon@yna.co.kr
(END)