Seoul shares dip 2.05 pct on economic woes

(ATTN: ADDS bond yields at bottom)
SEOUL, Jan. 12 (Yonhap) -- South Korean stocks closed 2.05 percent lower Monday
as investors grew jittery over a deepening global downturn following the
announcement of dismal U.S. job reports, analysts said. The local currency fell
against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) fell 24.21 points to
1,156.75. Volume was moderate at 347.9 million shares worth 3.85 trillion won
(US$2.83 billion), with losers outpacing gainers 653 to 182.
"The KOSPI started weaker, dented by Wall Street losses. After foreign investors
turned to net sellers of local stocks during the session, the Seoul bourse
extended earlier losses," said Park Suk-hyun, an analyst at Eugene Investment &
Securities Co.
"Ahead of the fourth-quarter earnings season, investors took a breather. If
companies present gloomier earnings outlooks for this year they will have a
negative impact on the local market."
South Korea's listed companies are set to announce their fourth-quarter earnings
starting Thursday, led by top steelmaker POSCO.
Tech and shipbuilders lost ground. Market leader Samsung Electronics fell 0.71
percent to 489,500 won and top shipbuilder Hyundai Heavy Industries tumbled 5.24
percent to 208,000 won.
After trading higher, flat panel giant LG Display closed down 0.84 percent at
23,550 won despite reports that it has signed a contract with Apple Inc. to
supply LCDs to the U.S. computer maker.
Fixed-line telephony and Internet giant KT added 4 percent to 40,300 won on
renewed expectations for a possible merger with No. 2 mobile phone operator KTF.
Before the market close, KT said in a regulatory filing that it is considering
merging with KTF to adapt to the fast-changing communications markets, adding
that nothing specific has been decided.
U.S. stocks closed lower Friday on deteriorating job market data, deepening fears
over the nation's economic recession. The Dow Jones industrial average fell 1.64
percent and the tech-dominated Nasdaq composite index shed 2.81 percent.
The local currency ended at 1,359 won to the dollar, down 16 won from Friday's
close, as offshore investors cut their holdings of local stocks, dealers said.
Bond prices, which move inversely to yields, closed lower. The return on
three-year Treasuries rose 0.05 percentage point to 3.53 percent and the
benchmark yield on five-year government bonds climbed 0.08 percentage point to
4.07 percent.
sooyeon@yna.co.kr
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