Seoul shares end 0.61 pct lower on Wall Street falls

(ATTN: ADDS bond yields at bottom; ADDS more info in paras 6-7)
By Kim Young-gyo
SEOUL, Sept. 2 (Yonhap) -- South Korean stocks closed 0.61 percent lower
Wednesday as foreign investors unloaded local shares, taking a cue from falls in
the U.S. market, analysts said. The local currency lost against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) fell 9.9 points to
1,613.16. Volume was moderate at 554.3 million shares worth 7.9 trillion won
(US$6.32 billion), with losers leading gainers 561 to 267.
"Investors here trailed after their counterparts on Wall Street, who turned their
backs on positive economic figures in the U.S.," said Lee Seung-woo, an analyst
at Daewoo Securities.
"While foreign investors grew nervous about the market, retail investors remained
optimistic, cutting earlier losses on the Seoul bourse."
Foreign investors turned net-sellers after a previous session of buying, dumping
local shares worth 301 billion won.
A positive credit rating given by global credit appraiser Fitch Ratings, however,
helped pare earlier steep losses in the Seoul bourse, giving investors some
comfort, analysts said.
Fitch upgraded its rating for the country from "negative" to "stable" amid
growing signs the economic downturn is easing and that market confidence is
stabilizing.
Heavy industries and shipbuilders traded in negative territory. The world's
largest shipbuilder Hyundai Heavy Industries shed 2.60 percent to 187,500 won and
leading power equipment maker Doosan Heavy Industries & Construction dropped 1.74
percent to 62,300 won.
Automakers, however, advanced on expectations their share in the global auto
market will continue to increase. Hyundai Motor gained 0.88 percent to 115,000
won and its smaller affiliate Kia Motors rose 1.98 percent to 18,050 won.
The local currency ended at 1,249.9 won against the dollar, down 9.3 won from
Tuesday's close, as foreign investors sold local shares, dealers said.
Bond prices, which move inversely to yields, closed higher. The return on
three-year Treasuries shed 0.06 percentage point to 4.31 percent and the
benchmark yield on five-year government bonds dropped 0.08 percent to 4.83
percent.
ygkim@yna.co.kr
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