Seoul stocks down on dim prospects for U.S rescue plan

SEOUL, Sept. 26 (Yonhap) -- South Korean shares fell sharply late Friday morning due to growing uncertainty over the passage of a much-cheered U.S. bailout plan, analysts said.

The benchmark Korea Composite Stock Price Index (KOSPI) fell 20.89 points, or
1.39 percent, to 1,480.74 as of 11:20 a.m.
"An overnight report of U.S presidential candidates' disagreement over the
bail-out plan fueled uncertainty over an imminent rescue of the global financial
system," said Kwak Jung-bo, an analyst at Hana Daetoo Securities.
Unnerved investors are pulling out money to secure profit from the local stock
market, which saw three days of consecutive gains, Kwak added.
Financial shares were hit hard, with top financial service provider Woori Finance
Holdings dropping more than 3 percent following a report that its
derivatives-related losses would reach 100 billion won, and second-biggest player
Shinhan Financial Group falling more than 2 percent.
Large-cap shares traded lower on a dismal demand forecast. Market heavyweight
Samsung Electronics shed 1.94 percent and LG Electronics lost 1.79 percent with
its affiliate LG Display dropping 0.82 percent.
Construction issues were also dented, reflecting sluggish global real estate
markets. Major builder Hyundai Engineering & Construction shed 3.18 percent and
Daewoo Engineering & Construction dropped 2.67 percent.
The local currency was trading at 1,156.7 won to the U.S. dollar as of 11:20
a.m., up 1.8 won from Thursday's close.
pbr@yna.co.kr
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