Seoul shares end 1.48 pct lower on recovery woes

(ATTN: ADDS bond yields at bottom)
By Lee Youkyung
SEOUL, Oct. 29 (Yonhap) -- South Korean stocks finished 1.48 percent lower
Thursday as foreign investors dumped shares on worries over the U.S. economic
recovery, analysts said. The local currency fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) sank 23.86 points to
1,585.85, falling below the 1600-point mark for the first time since Oct. 7.
Volume was moderate at 365 million shares worth 5.6 trillion won (US$4.66
billion) with losers outnumbering gainers 630 to 177.
"Foreigners unloaded holdings on jitters over whether the world's largest economy
is recovering or not," said Hwang Bin-ah, an analyst at Kyobo Securities. "Their
broad selling dispirited local investors."
Steelmakers were among the hardest hit as a rising dollar was expected to weigh
down steel prices. Industry leader POSCO fell 5.06 percent to 497,500 won and No.
2 steelmaker Hyundai Steel plunged 5.75 percent to 77,100 won.
Woori Finance Holdings, the biggest financial service company, fell 1.49 percent
to 16,500 won despite its third-quarter earnings report that exceeded market
expectations.
Hynix Semiconductor, however, bucked the trend, shooting up 3.95 percent to
18,400 won on an upbeat outlook for the chip industry for the next year.
U.S. shares declined Wednesday as a weaker U.S. housing data renewed concerns
over the economy. The Dow Jones industrial average dipped 1.21 percent and the
tech-heavy Nasdaq plunged 2.67 percent.
The local currency closed at 1,196 won to the dollar, down 0.6 won from
Thursday's close, as global equity drops led investors to seek the safety of the
greenback, dealers said.
Bond prices, which move inversely to yields, closed higher. The return on
three-year Treasuries declined 0.06 percentage point to 4.45 percent and the
benchmark yield on five-year government bonds fell 0.05 percentage point to 4.93
percent.
ylee@yna.co.kr
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