Seoul shares tumble on uncertainty over U.S. bailout plan

SEOUL, Sept. 26 (Yonhap) -- South Korean stocks tumbled Friday as investors dumped tech, finance and other large-cap shares on renewed concerns that a much-awaited U.S. bailout plan for its ailing financial system could be delayed due to prolonged political wrangling, analysts said. The local currency fell to a
49-month low against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) fell 25.3 points, or 1.68
percent, to 1,476.33. Volume was heavy at 495.69 million shares worth 4.27
trillion won (US$3.68 billion), with losers outpacing gainers 537 to 258.
"Despite overnight rallies in the U.S., investors were disappointed with news of
a possible delay in the Washington-led US$700 billion bailout package, on which
many have pinned hopes of the financial system becoming stable," said Choi
Soon-ho, an analyst at Eugene Investment & Securities.
News of a near agreement on the Bush administration's bailout plan drove
overnight rallies on Wall Street. But investor optimism was dashed hours later as
the presidential candidates reportedly failed to iron out differences over what
government officials see as a crucial move to avoid an economic recession.
Tech exporters were among the largest contributors to the downswing. Market
heavyweight Samsung Electronics plunged 2.47 percent to 553,000 won and LG
Electronics lost 2.69 percent to 108,500 won. Affiliate LG Display also dropped
2.29 percent to 29,900 won.
Financial and construction shares were also rattled. Top financial service
provider Shinhan Financial Group fell 2.05 percent to 43,100 won, while smaller
lender Woori Finance Holdings dropped 7.46 percent to close at 12,400 won.
Leading builder Daewoo Engineering & Construction plunged 5.33 percent to 14,200
won.
Telecoms, however, closed higher than the previous session, with leading mobile
carrier SK Telecom closing up 0.99 percent at 203,500 won.
The local currency finished at 1,160.5 won to the dollar, the lowest in 49
months, down 2.3 won from Thursday's close on increased demand for the greenback
from importers. The decline came despite the government's earlier announcement
that it will inject at least $10 billion into the foreign currency swap market
over the next few months to stabilize the dollar supply.
Bond prices, which move inversely to yields, fell sharply. The return on
three-year Treasuries surged 0.08 percentage point to 6.01 percent and the
benchmark yield on five-year government bonds also rose 0.08 percentage point to
6.04 percent.