Seoul shares slip

Seoul shares fell for a second session on Monday as Doosan Heavy plunged after Goldman Sachs started coverage of the builder with a sell rating, while other recent shiners fell on worries valuations had grown too rich.
But LG.Philips LCD surged to its highest in more than a year on expectations it may swing to a profit as this quarter, while chip makers such as Samsung Electronics rose as they tracked higher US peers.
Analysts warned the benchmark KOSPI might face further losses this week as the index's record-setting rally since the beginning of April could have left some sectors such as shipbuilders at worrisome technical levels.
Trade was also expected to remain volatile ahead of the simultaneous expiry on Thursday of stock options, stock index options and stock index futures, an event known as triple witching day.
"This may be the beginning of a pullback. We've got some sectors that have simply gained too much, and naturally there's some caution setting in," said Chung Kyun-sik, chief investment officer at East Star Investment Advisors. The benchmark Korea Composite Stock Price Index (KOSPI) fell 0.62 percent to 1,716.56 points, after already dropping 1.5 percent on Friday.
However, the main index was still up 19.7 percent for the year, after setting its latest record just on Thursday. Dozen Heavy Industries and Construction Co Ltd dropped 9.88 percent to 82,100 won, its biggest one-day loss since May 2004, after Goldman Sachs assigned a sell rating and a 70,500 won share target price, saying valuations had become too expensive following a rally this year.
Dozen had surged 125 percent this year to a record 99,500 won on June 1, but shares have fallen since. Other builders also dropped on worries that a rally since April, which had been fuelled largely by a surge in overseaas orders, had been excessive. Daiwa Engineering and Construction Co Ltd dropped 5.11 percent to 25,050 won,
Hyundai Heavy Industries Co slumped 2.73 percent to 303,000 won after the Korea Economic Daily reported on Monday that the world's biggest shipbuilder was interested in buying a 35 percent stake in refiner Hyundai Oilbank, citing an unnamed official at Hyundai Heavy.
Later in the day, Hyundai Heavy confirmed the top shareholder of Hyundai Oilbank, Abu Dhabi's International Petroleum Investment Co (IPIC), had made the stake offer to the shipbuilder.
But among the bright spots, LG.Philips LCD surged 5.99 percent to 42,500 won, after touching its highest intrude since April 2006, on expectations the flat-panel maker could swing to a profit as the second quarter on the back of a recovery in panel prices and aggressive cost cutting.
Chipmakers also advanced after the widely followed Philadelphia Stock Exchange's semiconductor index surged 3.1 percent on Friday. Samsung Electronics Co Ltd rose 1.05 percent to 578,000 won, while Hynix Semiconductor Inc gained 1.43 percent to 32,000 won. POSCO Co Ltd rose 2.31 percent to 466,000 won on speculation about consolidation among global steel makers that had began on Friday in European and US markets.
Shares of United States Steel Corp surged on Friday after Russian news Interfax reported that German steel maker ThyssenKrupp was interested in buying either the US firm or Russia's Severstal. Severstal's CEO on Saturday denied the report.