Seoul shares fall 9.44 pct on global recession woes

SEOUL, Oct. 16 (Yonhap) -- South Korean stocks tumbled over 9 percent as investors dumped large-cap shares, spooked by overnight plunges in the U.S. and growing concerns over a global economic recession, analysts said.

The won fell
sharply against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) lost 126.5 points or 9.44
percent to 1,213.78, the largest singe-day percentage loss in over eight years.
Volume was heavy at 401.6 million shares worth 6.03 trillion won (US$4.39
billion), with losers outnumbering winners 813 to 61.
Sharp losses prompted the bourse operator to suspend program trading temporarily
in early morning trading to cool the overheating market, the eighth such
emergency break this year.
"The market is panicking," said Kim Hak-gyun, an analyst at Korea Investment &
Securities. "Overnight setbacks in the U.S. sparked sell-offs and losses extended
on concerns that the ongoing financial turmoil might send the global economy into
a recession."
On Wednesday, U.S. markets plunged after government data including
worse-than-expected retail sales indicated that its economy is slipping into a
recession. The Dow Jones industrial average dived 7.87 percent and the
tech-dominated Nasdaq composite index fell 8.47 percent.
Foreign investors drove the market downswings, dumping a net 635 billion won
worth of local shares. Retailors hunted for cheap shares, purchasing a total of
570 billion won worth of shares.
Most blue-chip shares ended sharply lower, with steel, financial and shipyard
shares falling to their daily limits.
Top steelmaker POSCO dived by its daily limit of 14.95 percent to 301,500 won and
smaller Hyundai Steel also plunged 14.06 percent to 38,800 won. No. 2 financial
service provider Shinhan Financial Group closed down 11.18 percent at 36,950 won.
No. 1 shipyard Hyundai Heavy Industries fell 14.87 percent to 186,000 won, while
rival Samsung Heavy Industries was also off 14.98 percent to end at 21,000 won.
Both posted their daily limit of losses.
Tech issues added to the downward move. Industry leader Samsung Electronics lost
7.86 percent to 504,000 won and chipmaker Hynix Semiconductor tumbled 14.72
percent to 15,350 won.
Telecom shares, however, were the sole advancers due to optimism over their
third-quarter earnings. Top mobile carrier SK Telecom rose 1.4 percent to 217,000
won.
Market panic also hit the local currency market hard. The won ended at 1,373 won
to the dollar, down 133.5 won from Wednesday's close on massive foreign selling
of Korean shares, dealers said. The descent is the largest ever single day drop
in almost 11 years.