Seoul stocks close 2.37 pct lower

SEOUL, May 14 (Yonhap) -- South Korean shares closed 2.37 percent lower Thursday, pummeled by relentless institutional and foreign selling, analysts said.

The
local currency lost against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) plunged 33.57 points to
1,380.95. Volume was heavy at 694.05 million shares worth 7.47 trillion won
(US$5.9 billion), with losers outpacing gainers 552 to 272.
"Massive institutional and foreign selling sent the key index tumbling amid
uncertainties over U.S. consumer spending," said Hwang Bin-ah, an analyst at
Kyobo Securities.
The U.S. government said retail sales unexpectedly fell in April for the second
straight month, and a news report said that home foreclosures in the U.S. are on
the rise.
Institutional investors reduced holdings, as they scrambled to lock in profits to
meet demand for fund redemption. Foreigners were net sellers for the third day.
Large-cap shares tumbled across the board. Market leader Samsung Electronics shed
1.43 percent to 552,000 won and top automaker Hyundai Motor lost 1.69 percent to
64,000 won.
Banks also lost ground. Woori Finance Holdings, the parent for Woori Bank, lost
4.59 percent to 10,400 won and KB Financial Group, which controls top lender
Kookmin Bank, shed 4.82 percent to end at 42,500 won.
The local currency finished at 1,267.2 won to the dollar, down 23.2 won from
Wednesday's close, on foreign investors' stock selling, dealers said.