Seoul stocks end 0.72 pct down on U.S. bank plan

SEOUL, Feb. 11 (Yonhap) -- South Korean stocks closed 0.72 percent lower
Wednesday as investors were skeptical about a massive U.S. bank rescue plan,
analysts said. The local currency plunged against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) declined 8.69 points to
1,190.18. Volume was moderate at 461.4 million shares worth 4.2 trillion won
(US$3.01 billion), but winners outpaced losers 432 to 417.
The key index fell as much as 3 percent in early session, but managed to pare
losses on massive retail purchasing.
"Investor frustration with the U.S. bank rescue plan weighed on local stocks, but
their losses were pared by optimism about South Korea's exports," said Kim
Sung-joo, an analyst at Daewoo Securities.
According to preliminary government data, the nation's exports surged 17 percent
on-year in the first 10 days of this month.
Banking stocks tumbled, with KB Financial Group, which controls top lender
Kookmin Bank, shedding 3.76 percent to 34,550 won.
Shinhan Financial Group lost 1.91 percent to 29,000 won and Woori Finance
Holdings also shed 2.25 percent to 7,820 won.
Leading shipbuilders, however, registered substantial gains on signs of a thaw in
the shipping industry. Hyundai Heavy Industries rose 2.06 percent to 223,000 won
and Daewoo Shipbuilding & Marine Engineering jumped 4.49 percent to 25,600 won.
The local currency ended at 1,393.5 won to the dollar, down 10.6 won from
Tuesday's close, as foreign investors unloaded local stocks, dealers said.
pbr@yna.co.kr
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