Seoul stocks shed 0.2 pct on North's nuke test

SEOUL, May 25 (Yonhap) -- South Korean stocks finished marginally lower Monday as the market struggled to erase sharp falls from a nuke test by North Korea, analysts said. The local currency lost against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) fell 2.85 points, or 0.2
percent, to 1,400.9. Volume was heavy at 817.8 million shares worth 8.53 trillion
won (US$6.8 billion), with losers outpacing gainers 561 to 292.
After opening in negative territory, the key index briefly tumbled as much as 6.3
percent on news reports that the North conducted a nuclear test this morning,
following its earlier warning of retaliation for the U.N's rebuke of its April 5
rocket launch.
The market, however, recovered most of its losses as investors gauged the nuke
threat as short-lived.
"The market more than recovered its loss from the nuke test as investors learned
from past experiences that the geopolitical factor is of negligible impact," said
Kwak Joong-bo, an analyst at Hana Daetoo Securities.
"The investors also seemed neutral on the suicide of latest former president Roh
Moo-hyun as they cautiously measured the financial ramification of it," Kwak
said.
Roh, the president for 2003-2008, died after jumping off a cliff on Saturday amid
a probe by prosecutors into allegations his family members took bribes of
around US$6 million.
Large-cap tech shares led the overall losses with Samsung Electronics shedding
0.91 percent to end at 545,000 won.
Ssangyoung Motor jumped 8.75 percent to 2,050 won as the news that the smallest
carmaker was ordered by a court to draft a survival plan subdued jitters over the
firm's potential bankruptcy.
Top wireless carrier SK Telecom gained 1.98 percent to 180,000 won after the firm
said on Friday it is mulling acquiring a stake in the credit-card business from
Hana Financial Group, to boost its financial businesses.
Hana Financial Group, the fourth-largest financial holding firm, finished steady
at 28,800 won.
Kia Motors also added 5.37 percent to 12,750 won on upbeat outlook on its sales.
The local currency ended at 1,249 won against the dollar, down 1.6 won from
Friday's close, snapping two-day gains, as North's nuclear test-launching raised
risk fears over the peninsula, dealers said.