Seoul stocks end 0.87 pct down despite rate cut

SEOUL, Feb. 12 (Yonhap) -- South Korean stocks closed 0.87 percent lower Thursday
despite the central bank's rate cut, as economic concerns dampened investor
sentiment, analysts said. The local currency fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) declined 10.34 points to
1,179.84. Volume was moderate at 480.5 million shares worth 4.7 trillion won
(US$3.3 billion), with losers outpacing gainers 436 to 411.
"The rate reduction failed to calm investors' jitters about the stagnant
economy," said Kwak Joong-bo, an analyst at Hana Daetoo Securities.
Earlier in the day, the Bank of Korea slashed the policy rate by half a
percentage point to a new record low of 2 percent in a bid to kick-start the
sagging economy.
Financial shares led the drop as lenders released disappointing fourth-quarter
earnings. Woori Finance Holdings, which owns third-largest lender Woori Bank,
lost 7.54 percent to 7,230 won after announcing it swung to a loss of 664.8
billion won last quarter.
KB Financial Group, which controls top lender Kookimn Bank, also dropped 5.35
percent to 32,700 won with Shinhan Financial Group also losing 4.83 percent to
27,600 won.
Local lenders suffered heavy losses last quarter on swelling loan-loss reserves
as a number of businesses were exposed to potential defaults following sales
drops.
Chip giant Samsung Electronics, however, closed up 1.36 percent to 520,000 won on
expectations it will remain competitive, even after Japanese chipmaker Elpida
Memory's consolidation with Taiwanese chip producers.
The local currency ended at 1,404.5 won to the dollar, down 11.5 won from
Wednesday's close, as foreign investors sold local shares, dealers said.
pbr@yna.co.kr
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