Seoul shares down 0.45 pct in late morning

SEOUL, Dec. 12 (Yonhap) -- South Korean stocks dropped 0.45 percent late Friday morning on hefty overnight falls on Wall Street and profit-taking, analysts said.
The benchmark Korea Composite Stock Price Index (KOSPI) declined 5.22 points to
1,149.21 as of 11:20 a.m.
"The bourse was hurt by uncertainties over a U.S. aid package for carmakers, with
profit-taking after recent rallies exerting downward pressure," said Kwak
Jung-bo, an analyst at Hana Daetoo Securities.
A drastic rate cut on Thursday, however, helped pare earlier steep losses as
investors expect the won will rise down the road, Kwak said. The Bank of Korea
slashed the benchmark interest rate by a record full percentage point to 3
percent to stave off an economic freefall.
Wall Street were rattled on Thursday after the U.S. Senate disagreed on a US$14
billion bailout bill for beleaguered automakers and the number of unemployed
people hit a 26-year high. The Dow Jones industrial average fell 2.24 percent and
the tech-laced Nasdaq composite index also plummeted 3.68 percent.
The local currency was trading at 1,352.05 won to the U.S. dollar as of 11:20
a.m., up 6.45 won from Wednesday's close.
pbr@yna.co.kr
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