Seoul stocks end 0.28 pct down on correction fears

SEOUL, Aug. 19 (Yonhap) -- South Korean stocks closed 0.28 percent lower Wednesday as falling Asian shares fed jitters over a potential deep correction, analysts said. The local currency fell against the U.S. dollar.

In volatile trading, the benchmark Korea Composite Stock Price Index (KOSPI)
declined 4.28 points to end at 1,545.96. Volume was moderate at 512.3 million
shares worth 6.7 trillion won (US$5.3 billion) with losers outpacing winners 437
to 373.
"Big falls in the Chinese market stoked jitters over a looming correction period
after recent rallies," said Kim Dong-ha, an analyst at Kyobo securities.
Shipbuilders and steelmakers led the losses on fears retreating Chinese stocks
may weigh down the sectors sensitive to the neighboring nation's economy.
Top shipmaker Hyundai Heavy Industries lost 3.75 percent to 192,500 won and
Daewoo Shipbuilding & Marine Engineering plummeted 4.96 percent to 20,100 won.
Second-largest steel producer Hyundai Steel plunged 2.17 percent to 67,500 won
with POSCO shedding 0.22 percent to settle at 460,000 won.
Gains by IT shares and automakers, however, helped stem deeper losses.
"IT firms and carmakers have been in the forefront of the KOSPI's gains as the
sectors remained key forces of the economy," said Lee Sang-hyun, an analyst at
Hana Daetoo Securities.
Underpinned by climbing memory-chip prices, Hynix Semiconductor advanced 4.18
percent to 19,950 won with Samsung Electronics also rising 2.33 percent to
747,000 won.
Top automaker Hyundai Motor shot up 5.02 percent to 96,200 won as their global
sales and profitability gained strength due to incentives on new car purchases
across the world.
The local currency ended at 1,255.8 won to the U.S. dollar, down 9.5 won from
Tuesday's close as foreigners shunned emerging currencies due to murky recovery
predictions, dealers said.