Seoul shares end down 0.55 pct on financial woes

(ATTN: ADDS bond yields at bottom)
SEOUL, Feb. 19 (Yonhap) -- South Korean stocks ended 0.55 percent lower Thursday
as investor sentiment was dented by fresh worries about financial instability,
analysts said. The local currency fell against the U.S. dollar for an eighth day.
The benchmark Korea Composite Stock Price Index (KOSPI) declined 14 points to
1,113.19. Volume was heavy at 635.64 million shares worth 4.6 trillion won
(US$3.1 billion), with losers outpacing gainers 493 to 323.
"The key index lost ground as investors were jittery over the financial health of
banks in Eastern Europe," said Sung Jin-kyung, an analyst at Daeshin Securities
Co.
Concern has been growing over the financial soundness of Eastern European banks
saddled with rising bad loans, which analysts say may reignite turmoil in global
markets.
Most blue chips on the Seoul bourse fell, with top steelmaker POSCO dropping 3.14
percent to 339,000 won, while Hyundai Motor lost 1.04 percent to 47,700 won.
Financial shares closed mixed. KB Financial Group, which controls top lender
Kookmin Bank, dropped 0.70 percent to 28,300 won, while Shinhan Financial Group
gained 2.33 percent to 24,150 won.
Market leader Samsung Electronics edged up 0.52 percent to 480,500 won on
expectations chip prices may rise down the road.
The local currency closed at 1,481 won to the dollar, down 13 won from
Wednesday's close, due to worries about local banks' ability to repay their
foreign debts maturing in March, dealers said.
Bond prices, which move inversely to yields, closed mixed. The return on
three-year Treasuries rose 0.01 percentage point to 3.75 percent and the
benchmark yield on five-year government bonds went down 0.13 percentage point to
4.71 percent.
ygkim@yna.co.kr
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