Seoul shares end 1.58 pct down on institutional, foreign selling

SEOUL, Dec. 4 (Yonhap) -- South Korean stocks closed 1.58 percent lower Thursday
as institutions and foreign investors dumped blue chips, outweighing earlier
gains from bargain hunting, analysts said. The local currency depreciated against
the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) tumbled 16.13 points to
1,006.54. Volume was moderate at 392.4 million shares worth 4.38 trillion won
(US$2.95 billion). Losers outnumbered gainers 506 to 299.
The key index, which gained nearly 2 percent in early trading on overnight U.S.
stock gains, later lost ground on institutional and foreign selling, briefly
dipping below the 1,000-mark in afternoon trading.
"Wall Street's gains in the previous session didn't seem sufficient to soothe
concerns of the global economy's outlook," said Bae Sung-yung, an analyst at
Hyundai Securities.
Insurance and other finance shares led the overall losses, with leading non-life
insurer Samsung Fire & Marine plunging 6.94 percent to 167,500 won. Woori Finance
Holdings, the country's top financial services firm, fell 6.2 percent to 6,200
won.
Construction and tech exporters also lost heavily. Top builder Daewoo Engineering
& Construction plummeted 6.7 percent to 8,500 won and market heavyweight Samsung
Electronics after Merrill Lynch report forecasted that the company's operating
profit may fall drastically in the fourth quarter.
Steel and auto stocks, however, managed to gain ground. Top steelmaker POSCO
climbed 2.84 percent to 326,000 won and No. 2 automaker Kia Motors advanced 4.72
percent to 6,440 won.
The local currency closed at 1,477 won to the U.S. dollar, down 8 won from
Wednesday's close, as offshore investors dumped the won, dealers said.
odissy@yna.co.kr
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