Seoul shares close down 1.24 pct on recession woes

(ATTN: ADDS bond yields at bottom)
SEOUL, Feb. 18 (Yonhap) -- South Korean stocks ended 1.24 percent lower Wednesday
as investor sentiment was hurt by growing anxiety about a global recession,
analysts said. The local currency fell against the U.S. dollar for seven days in
a row.
The benchmark Korea Composite Stock Price Index (KOSPI) declined 14 points to
1,113.19. Volume was moderate at 590.96 million shares worth 4.58 trillion won
(US$3.12 billion), with losers outpacing gainers 432 to 385.
"The stock markets here dropped for the third day as U.S. markets plummeted
toward last year's lows. Investors are wondering if the world's economies can
avoid slipping deeper into recession," said Park Jung-seop, an analyst at Daeshin
Securities Co.
On Tuesday, U.S. stocks retreated amid economic worries, although President
Barack Obama signed a $787 billion stimulus package to revive the world's largest
economy. The Dow Jones industrial average fell 3.79 percent and the
tech-dominated Nasdaq composite index shed 4.15 percent.
Most blue chips on the Seoul bourse took a plunge with market leader Samsung
Electronics losing 2.55 percent to 478,000 won. Top steelmaker POSCO fell 3.14
percent to 339,000 won.
KB Financial Group, which controls top lender Kookmin Bank, also plummeted 6.85
percent to 28,500 won, while Shinhan Financial Group lost 5.79 to 23,600 won.
The local currency closed at 1,468 won to the dollar, down 12.5 won from
Tuesday's close, as foreign investors unloaded local shares, dealers said.
Bond prices, which move inversely to yields, closed higher. The return on
three-year Treasuries fell 0.23 percentage point to 3.74 percent and the
benchmark yield on five-year government bonds went down 0.04 percentage point to
4.84 percent.
ygkim@yna.co.kr
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