Seoul stocks fall 0.1 pct on banking losses

SEOUL, March 5 (Yonhap) -- South Korean stocks dropped 0.1 percent Thursday as
banks tumbled due to their exposures to ailing shipbuilders, analysts said. The
local currency fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) edged down 1.08 points to
1,058.18 in volatile trading. Volume was moderate at 503.8 million shares worth
4.44 trillion won (US$2.82 billion), with losers outperforming gainers 483 to
342.
"The market sentiment was dented by word that the collapse of a troubled small
shipyard could deal a heavy blow to its creditor banks and other shipbuilders,"
said Kim Seung-han, an analyst at Hi Securities.
Bank shares fell across the board due to potential exposures to Jinse
Shipbuilding, which saw their orders canceled after it was placed under a debt
rescheduling program in late January.
KB Financial Group, which controls top lender Kookmin Bank, fell 3.11 percent to
28,000 won with Woori Finance Holding declining 4.53 percent to 5,900 won.
Shipbuilders lost substantial ground following a two-day bullish run. Industry
leader Hyundai Heavy Industries lost 3 percent to end at 178,000 won.
Tech firms and steel makers, however, closed higher on foreign buying with
Samsung Electronics jumping 2.86 percent to 503,000 won and POSCO rising 1.87
percent to 326,500 won.
Buoyed by strong overseas markets, foreign investors snapped up local shares,
ending a 17-session selling streak.
The local currency ended at 1,568 won against the U.S. dollar, down 17 won from
Wednesday's close, due to a weak stock market, dealers said.
pbr@yna.co.kr
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