Seoul stocks end down 1.3 pct on banking losses

(ATTN: CORRECTS KOSPI percent in headline & lead, closing figure in 2nd para)
SEOUL, Feb. 2 (Yonhap) -- South Korean stocks closed 1.3 percent lower Monday as
banking shares lost substantial ground, tracking U.S. banking falls, analysts
said. The local currency fell against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) slid 15.16 points to
1,146.95. Volume was moderate at 368.93 million shares worth 4.40 trillion won
(US$3.17 billion), with losers outpacing gainers 482 to 344.
"The financial sector's steep fall led the key index slide as investors predicted
a stalled U.S. bank rescue plan will weigh down on local banks," said Seo
Dong-pil, an analyst at Hana Daetoo Securities.
Financial shares shed substantial ground as U.S. banking shares fell sharply on
the rescue plan's delay. KB Financial Group, which controls top lender Kookmin
Bank, sank 5 percent to close at 35,150 won and Shinhan Financial Group, whose
flagship unit is Shinhan Bank, slipped 7.19 percent to 26,450 won on speculation
the company might issue new shares to increase capital.
Large-cap tech shares were also dented with market bellwether Samsung Electronics
shedding 2.97 percent to 473,500 won. Smaller rival LG Electronics dropped 1.25
percent to 71,100 won.
Shipbuilders, however, extended gains for a second day on solid foreign buying.
Market leader Hyundai Heavy Industries gained 2.75 percent to 205,500 won and
Daewoo Shipbuilding & Marine Engineering rose 3.61 percent to 21,500 won after
the shipbuilder reported its fourth-quarter net profit increased more than
five-fold to a record high.
Hyundai Mobis, the auto parts producing unit of Hyundai Motor, spiked 4.29
percent to 68,000 won after it reported fourth-quarter earnings reached a record
high on a weak won.
The local currency ended at 1,390 won to the dollar, down 10.5 won from Friday's
close, amid bleak exports forecasts. South Korean exports tumbled a record 32.8
percent January from a year earlier, government data showed.
pbr@yna.co.kr
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