Seoul stocks end 2.95 pct down on institutional sell-off

SEOUL, April 28 (Yonhap) -- South Korean shares closed 2.95 percent lower
Tuesday, pummeled by relentless institutional selling, analysts said. The local
currency lost against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) plunged 39.59 points to
1,300.24, the lowest in about three weeks. Volume was heavy at 746.19 million
shares worth 7.52 trillion won (US$5.54 billion), with losers outpacing gainers
737 to 142.
"Massive institutional selling sent the key index tumbling amid uncertainties
over the U.S. banking sector," said Seo Dong-pil, an analyst at Hana Daetoo
Securities.
Two leading American lenders were reportedly required to raise more capital
following the test of banks' health.
Institutional investors reduced holdings of local stocks for a 17th session, the
longest selling-streak in eight years, as they scrambled to lock in profits on
increasing demand for fund redemption.
Large-cap shares tumbled across the board. Market leader Samsung Electronics shed
1.71 percent to 575,000 won and Hynix, the second largest memory-chip maker,
slumped 8.79 percent to 14,000 won.
Banks lost ground on their U.S. peers' woes. Woori Finance Holdings, the parent
for Woori Bank, lost 5.89 percent to 8,470 won and KB Financial Group, which
controls top lender Kookmin Bank, shed 4.32 percent to end at 35,400 won.
The outbreak of deadly swine flu dragged on air carrier shares on reduced air
travel demand. Korean Air fell 2.38 percent to 36,900 won with Asiana dropping
3.25 percent to 3,870 won.
The local currency finished at 1,356.8 won to the dollar, down 13.4 won from
Monday's close, as the turbulent market prompted foreign stock selling, dealers
said.
pbr@yna.co.kr
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