Seoul stocks end 0.3 pct lower on bank woes

SEOUL, March 6 (Yonhap) -- South Korean stocks closed down 0.3 percent Friday as
banks tumbled on jitters over the U.S. banking system and their dollar liquidity,
analysts said. The local currency gained against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) shed 3.15 points to
1,055.03. Volume was moderate at 455.1 million shares worth 3.39 trillion won
(US$2.19 billion), with losers outperforming gainers 464 to 357.
"Local lenders were battered by troubled U.S. banks after the credit ratings of
two major U.S. lenders were cut," said Lee Jae-mahn, an analyst at Dong Yang
Investment Bank.
Worries about local banks' dollar funding abilities also weighed on their share
prices, other analysts said.
Shinhan Financial Group, which controls Shinhan Bank, dropped 4.43 percent to
20,500 won and KB Financial Group, which owns top lender Kookmin Bank, shed 3.93
percent to 26,900 won.
Korea Electric Power, the state-owned energy agency, declined 3.72 percent to
23,300 won on speculation that a weak won will boost its oil securing costs,
weighing down its earnings
NHN, the provider of biggest portal Naver, shed 3.24 percent to 134,500 won after
announcing Thursday it will spin off its advertising and server management unit.
The local currency ended at 1,550 won against the U.S. dollar, up 18 won from
Thursday's close, due to won purchases by foreign investors.
pbr@yna.co.kr
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