Seoul shares close down 1.62 pct on institutional selling

SEOUL, Dec. 1 (Yonhap) -- South Korean stocks finished 1.62 percent lower Monday in choppy trading as institutional sellling more than offset bargain hunting by retail and foreign investors, analysts said. The local currency gained sharply against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) fell 17.45 points to
1,058.62. Volume was heavy at 620.15 million shares worth 4.6 trillion won
(US$3.19 billion) with losers outnumbering gainers 454 to 373.
"Despite U.S. stock gains on Friday, the key index suffered after a four-session
winning streak as institutions dumped blue chips on lingering jitters over the
outlook of the economy," Lim Dong-min, an analyst at Dongbu Securities said.
A government report released earlier in the day showed that South Korean exports
nosedived 18.3 percent from a year earlier to $29.26 billion in November as a
global recession cut demand for Korean-made goods.
Steelmakers and financials lost substantially, with steel giant POSCO slipping
1.91 percent to 333,500 won and Shinhan Financial Group slumping 3.28 percent to
29,500 won.
Energy stocks and automakers also ended in the red. Leading refiner SK Energy
fell 1.18 percent to 67,200 won and top automaker Hyundai Motor also shed 1.2
percent to end at 41,000 won.
Heavy machinery makers, however, gained sharply on bargain hunting following
recent steep losses. Doosan Heavy Industries, the leading power generator
producer, climbed 4.56 percent to 55,000 won.
U.S. stocks closed up on Friday on hopes that the incoming government's economic
plan may resuscitate ailing confidence in markets. The Dow Jones industrial
average rose 1.17 percent while the tech-dominated Nasdaq composite index rose
0.23 percent.
The local currency closed at 1,440 won to the U.S. dollar, up 29 won from
Friday's close, as offshore investors bought the Korean won, dealers said.
odissy@yna.co.kr
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