Seoul shares end 0.16 pct lower on N. Korea's missile threat

By Kim Soo-yeon
SEOUL, June 2 (Yonhap) -- South Korean stocks closed 0.16 percent lower Tuesday
as investor sentiment was hurt by reports that North Korea appears to be
preparing to test-fire a medium-range missile, analyst said. The local currency
fell against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) dipped 2.25 points to
1,412.85. Volume was moderate at 684.3 million shares worth 8.07 trillion won
(US$6.51 billion), with losers outpacing gainers 406 to 395.
"Sentiment was hurt by heightened geopolitical risks stemming from North Korea,
sending the index lower," said Kwak Joong-bo, an analyst at Hana Daetoo
Securities Co. "Intra-day volatility increased amid a selling spree of
institutional and retail investors."
The Seoul stock index got off to a strong start on the back of overnight rallies
in U.S. markets. But in late trading, the index reversed earlier gains on reports
that North Korea appears to be preparing to test-fire a medium-range missile on
its east coast.
Analysts said a bankruptcy protection filing by General Motors largely helped
dispel uncertainty in the market, sending the U.S. stock indexes higher.
Wall Street shares rallied on Monday after data showed better-than-expected
figures in American manufacturing and construction spending, sending the Dow
Jones industrial average up 2.6 percent.
Leading builder Daewoo Engineering & Construction Co. jumped the daily limit of
14.8 percent to 12,800 won after its parent group Kumho Asiana Group said it will
put the builder up for the sale if it could not find any new investors by the end
of July. The group's affiliates also gained ground as it signed agreements with
its creditor bank to enhance it financial health. Kumho Tire advanced 0.36
percent to 5,550 won and Korea Kumho Petrochemical jumped 8.59 percent to 34,750
won.
Automakers closed mixed after trading in positive territory on prospects that the
bankruptcy protection filing by GM will benefit its Korean rival. Industry leader
Hyundai Motor fell 0.7 percent to 71,400 won while its affiliate Kia Motors
advanced 1.64 percent to 12,400 won.
The local currency ended at 1,239.2 won against the greenback, down 2 won from
Monday's close, as rising geopolitical risks prompted market players to snap up
the dollar, dealers said.
sooyeon@yna.co.kr
(END)