ID :
121704
Wed, 05/12/2010 - 16:08
Auther :

Seoul stocks end 0.43 pct lower on lingering European woes


SEOUL, May 12 (Yonhap) -- South Korean stocks finished 0.43 percent lower
Wednesday as investors cut their equity exposure due to fears over euro-zone
fiscal debt, analysts said. The local currency lost ground against the U.S.
dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) slumped 7.21 points to
end at 1,663.03. Trading volume was moderate at 440.1 million shares worth 7.2
trillion won (US$6.3 billion), with losers leading gainers 479 to 328.
Investors showed a muted reaction to the Bank of Korea's freeze of its key
interest rate at a record-low 2 percent for the 15th straight month.
"The widely anticipated rate freeze had no impact," said Seo Dong-pil, an analyst
at Hana Daetoo Securities. "The focus was still put on the European debt crisis.
The market has yet to recover confidence, with foreign investors remaining wary
of picking up emerging market equities."
Overseas investors, recently the key driver of local stocks, shifted to a net
selling mode after modest buying on Tuesday that followed a five-session selling
streak.
Financial shares took another heavy blow as foreigners scrambled to cut exposure
to the sector -- deemed the most vulnerable to the European debt crisis.
Top financial firm KB Financial Group lost 1.51 percent to 49,000 won and smaller
firm Shinhan Financial Group slid 1.92 percent to end at 43,350 won.
SK Telecom, the top wireless firm by subscription, rose 0.6 percent to 169,000
won after announcing a deal with Disney Channel International, a subsidiary of
Walt Disney, to form a joint broadcasting venture here this year. The venture
will start a broadcasting channel in early 2011.
Asiana Airlines, the nation's second-biggest air carrier, jumped 4.96 percent to
5,930 won ahead of its first-quarter earnings report due on Thursday. Bigger
rival Korean Air also soared 5.01 percent to end at 71,300 won.
Samsung Life Insurance, the largest life insurer, which made its debut on the
exchange Wednesday, ended at 114,000 won, up 3.6. percent from its initial public
offering price of 110,000 won. The company, however, trimmed earlier gains due to
hefty selling by foreign investors.
No. 2 life insurer Korea Life Insurance plunged 6.15 percent to end at 8,400 won.
The South Korean won ended at 1,143.8 won to the greenback, down 8.1 won from
Tuesday's close, as foreigners left the Korean stock market, dealers said.
pbr@yna.co.kr
(END)

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