Seoul shares down on weak confidence

SEOUL, Oct. 7 (Yonhap) -- South Korean stocks traded lower late Tuesday morning as an ongoing global credit crunch led foreign investors to sell off blue chips, analysts said.

The benchmark Korea Composite Stock Price Index (KOSPI) fell 7.7 points, or 0.57
percent, to 1,351.05 as of 11:20 a.m. The key index, however, managed to reduce
out its losses after falling as low as 1,322 in the morning.
"Market volatility continues to eat up investor sentiment, as foreign investors
are continuing their sell off in the market," said Bae Sung-young, an analyst at
Hyundai Securities.
The key index's loss, however, seem relatively bearable, considering other Asian
markets' losses ranged from 2 to 3 percent during the session, Bae noted.
Heavy machinery and steel issues led the overall losses. Doosan Heavy Industries
tumbled 5.64 percent and top steelmaker POSCO shed 1.43 percent.
Retailers also lost ground on fears that an economic slowdown could bring down
consumer demand. Shinsegae fell 1.14 percent and Hyundai Department Store fell
3.93 percent.
Tech exporters and automakers, however, gained ground on the local currency's
sharp depreciation against the U.S. dollar. Market leader Samsung Electronics
gained 1.16 percent and top automaker Hyundai Motor 1.99 percent.
U.S. stocks suffered steep losses Monday on fears the global economy was hurtling
into a recession despite efforts to contain the fast-spreading financial crisis.
The Dow Jones industrial average lost 3.58 percent and the tech-dominated Nasdaq
composite index lost 4.34 percent.
The local currency was trading at 1,340.55 won to the U.S. dollar as of 11:20
a.m., down a whopping 71.5 won from Monday's close.
odissy@yna.co.kr
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