Seoul stocks sink on banking, tech losses

SEOUL, March 2 (Yonhap) -- South Korean stocks dropped 3.19 percent late Monday
morning as steep losses in the local currency dented market sentiment, analysts
said. Banking and tech shares led the market drop.

The benchmark Korea Composite Stock Price Index (KOSPI) plunged 33.95 points to
1,029.08 as of 11:20 a.m.
"Investors seemed to be panicked by the won's quick decline, stemming from
Eastern European default concerns, with the government sending no clear message
on its foreign exchange stance," said Song Kyung-keun, an analyst at Dongbu
Securities.
Foreign investors' net-selling led the fall on the key index, sending large-cap
electronics shares and shipbuilders spiraling downward.
The won was trading at 1,561.3 won to the U.S. dollar as of 11:20 a.m., down 27.3
won from an 11-year low registered at Friday's close.
The local currency has dropped nearly 16 percent over the last month as foreign
investors look to reduce their exposure to the local market with South Korean
exports slumping due to sluggish demand overseas.
pbr@yna.co.kr
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