Seoul shares end 0.91 pct lower on U.S. losses

(ATTN: ADDS bond yields at bottom)
SEOUL, Nov. 17 (Yonhap) -- South Korean stocks closed 0.91 percent lower Monday
as export-oriented shares took a beating from Wall Street losses in the previous
session, analysts said. The local currency fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) fell 9.94 points to
1,078.32. Volume was moderate at 406.5 million shares worth 4.74 trillion won
(US$3.36 billion). Losers outnumbered gainers 425 to 389.
"Most stocks seem to have been affected by Wall Street's downswing on Friday
caused by unabating jitters over the future outlook of the U.S. economy," Lim
Dong-min, an analyst at Dongbu Securities, said.
U.S. stocks fell on Friday after a record drop in retail sales last month raised
concerns that reluctance to spend will drag the economy into an even deeper
downturn. The Dow Jones industrial average slumped 3.82 percent and the
tech-dominated Nasdaq composite index tumbled 5 percent.
Export-oriented stocks fell hard on the news of Wall Street's downturn. Market
heavyweight Samsung Electronics slumped 3.12 percent to 450,500 won and its
consumer electronics rival LG Electronics tumbled 4.76 percent to 76,000 won. Kia
Motors, the nation's No. 2 automaker, fell 3.27 percent to 9,460 won.
Steel and heavy machinery shares were also suffered. Top steelmaker POSCO fell
2.98 percent to 309,000 won and Doosan Heavy Industries, leading power generator
producer, shed 2.17 percent to end at 58,600 won.
Finance and construction shares, however, gained ground, betting that the
government's reported plan to restructure nonviable builders and saving banks
would strengthen profitability down the road. Woori Finance Holdings soared 9.02
percent to 5,800 won and Daewoo Engineering & Construction, No. 1 domestic
builder, climbed 6.39 percent to 34,950 won.
The local currency closed at 1,409 won to the dollar, down 9.8 won from Friday's
close, as offshore investors cut their holdings of local stocks, dealers said.
Bond prices, which move inversely to yields, gained sharply. The return on
three-year Treasuries fell 0.17 percentage point to 5.23 percent and the
benchmark yield on five-year government bonds tumbled 0.2 percentage point to 5.4
percent.
odissy@yna.co.kr
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