Seoul shares end 1.15 pct down on U.S. banking woes

SEOUL, Feb. 26 (Yonhap) -- South Korean stocks closed down 1.15 percent Thursday
as investor sentiment was dented by jitters over a U.S. bank rescue plan,
analysts said. The local currency dropped against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) fell 12.29 points to
1,054.79, the lowest since Dec. 5. Volume was heavy at 568.63 million shares
worth 4 trillion won (US$2.6 billion), with losers outpacing gainers 541 to 288.
"The key index dropped due largely to uncertainty over the future of U.S. major
banks," said Lee Seung-woo, an analyst at Daewoo Securities. "Concerns over North
Korea's missile launch were also responsible."
Relentless foreign selling weighed down the key index, with overseas investors
extending their net selling to the 13th consecutive session.
Worries linger over the U.S. banking sector after the Treasury Department said
Wednesday it will test the health of 19 largest lenders before injecting
government stakes or allowing them to raise fund on their own.
Large-cap consumer electronics shares were the biggest drag on the key index. LCD
giant LG Display tumbled 8.22 percent to 24,550 won. Memory chip giant Samsung
Electronics also closed 0.21 percent down at 477,000 won.
Kia Motors, an affiliate of biggest carmaker Hyundai Motor, dived 9.32 percent to
6,710 won on a market rumor the auto maker will float bonds with rights to buy
new shares. The estimated 400 billion won bonds are feared to dilute
shareholders' ownership.
Some financials, however, managed to gather ground. Woori Finance Holding closed
up 0.68 percent to 5,950 won and Hana Financial Group rose 1.95 percent to end at
18,300 won.
KT, the dominant fixed-line telephone service provider, also finished up 0.79
percent to 38,100 won following the national anti-trust body's decision on
Wednesday to give a nod to the company's merger with its wireless service unit.
The local currency ended at 1,517.5 won to the dollar, down 1.5 won from
Wednesday's close, as foreign investors unloaded local shares, dealers said.
pbr@yna.co.kr
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