Seoul shares down 4.3 pct on persistent jitters

SEOUL, Oct. 6 (Yonhap) -- South Korean stocks plunged more than 4 percent Monday, as a U.S. rescue plan failed to resuscitate damaged investor confidence in markets around the globe, analysts said.

The local currency plunged to a six-year low against the greenback.
The benchmark Korea Composite Stock Price Index (KOSPI) tumbled 60.9 points, or
4.29 percent, to 1,358.75, the lowest level since January 2007. Volume was
moderate at 307 million shares worth 4.86 trillion won (US$4.83 billion), with
losers outpacing gainers 775 to 79.
"The Seoul market, considering its close on Friday for a national holiday, fell
the most among Asian markets as confidence was battered over the weekend on
concerns that the credit crunch may soon impact economic indicators," said Lim
Dong-min, an analyst at Dongbu Securities.
U.S. stocks fell Friday as market watchers raised questions over the likely
effectiveness of congressional approval of a US$700-billion bailout plan. The Dow
Jones industrial average lost 1.5 percent and the tech-dominated Nasdaq composite
index lost 1.48 percent.
While most players expect the Bank of Korea to freeze interest rates for October
on Thursday, investors seem to be taking extra precautions as steep fluctuations
in the foreign exchange market may sway the bank's decision, Lim said
Large caps fell hard with machinery and construction stocks losing most. Doosan
Heavy Industries fell 8.02 percent to 78,000 won and Hyundai Engineering &
Construction plummeted 6.61 percent to 60,800 won.
Steelmakers and shipyards were also rattled hard. Top steelmaker POSCO slipped
7.7 percent to finish at 383,500 won and leading shipyard Hyundai Heavy
Industries fell 7.71 percent to 233,500 won.
Market leader Samsung Electronics lost 2.08 percent to end at 517,000 won,
finishing in the red along with other technology stocks, while most finance
stocks also finished lower.
The local currency closed at 1,269 won to the dollar, down 45.5 won from
Thursday's close, reaching its lowest level since May 2002, as offshore investors
snapped up the dollar due to growing concerns over volatility in the financial
markets, dealers said. The market was closed Friday for National Foundation Day.
Bond prices, which move inversely to yields, fell sharply. The return on
three-year Treasuries climbed 0.07 percentage point to 5.77 percent and the
benchmark yield on five-year government bonds also rose 0.07 percentage point to
5.79 percent.