Seoul shares down 0.04 pct in late-morning trade

SEOUL, July 8 (Yonhap) -- South Korean stocks traded 0.04 percent lower late Friday morning as declines in banks and telecommunication shares overshadowed optimism about the global recovery, analysts said.
Reversing earlier gains, the benchmark Korea Composite Stock Price Index (KOSPI) fell 0.77 points to 2,179.82 as of 11:20 a.m.
The KOSPI got off to a strong start as better-than-expected U.S. employment data eased concerns about the global slowdown, but the index crawled back into negative territory as bank and telecommunications shares traded lower.
Chip giant Hynix Semiconductor rose 2.65 percent ahead of its creditors' move to close preliminary bids for the chipmaker later in the day.
Market watchers expect the country's two industrial groups -- STX Group and SK Group -- to submit letters of intent to buy a 15 percent stake in Hynix Semiconductor. STX Group advanced 1.92 percent, while SK Telecom, a telecom unit of SK Group, tumbled 6.15 percent.
Top banking group KB Financial Group shed 0.19 percent after its banking unit Kookmin Bank earlier in the day sold its entire 9.05 percent stake in the group. Its rival Shinhan Financial lost 3.27 percent after the state deposit insurance agency sold out its stake in Shinhan Financial in a bid to recoup public funds.
The local currency was trading at 1,059.65 won to the greenback as of 11:29 a.m., up 4.45 won from Thursday's close, as a rate hike by the European Central Bank drove down the value of the dollar, dealers said.