Seoul shares sink 1.37 pct on recovery concerns

(ATTN: ADDS bond yields at bottom)
SEOUL, Nov. 2 (Yonhap) -- South Korean stocks dropped 1.37 percent Monday as a
U.S. lender's bankruptcy filing refueled investor concerns about the economy,
analysts said. The local currency remained flat against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) fell 21.6 points to
1,559.09, extending a losing streak for a fifth session. Volume was moderate at
285 million shares worth 4.32 trillion won (US$3.65 billion), with losers
outnumbering gainers 618 to 191.
"Weak consumer spending data from the U.S. and CIT Group's filing for Chapter 11
dampened market sentiment," said Hwang Keum-dan, an analyst at Samsung
Securities.
Banks were among the hardest hit, with Industrial Bank of Korea (IBK) losing 3.05
percent to 14,300 won. Korea Exchange Bank (KEB) declined 3.62 percent to close
at 13,300 won.
Carmakers sharply lost ground on profit-taking. Top automaker Hyundai Motor
plunged 6.88 percent to 102,000 won and its affiliate Kia Motors shed 1.94
percent to 17,650 won.
Most large caps traded in negative territory. Market bellwether Samsung
Electronics shed 0.69 percent to close at 718,000 won.
But shipbuilders rose slightly. Hyundai Heavy Industries gained 0.6 percent to
167,000 won, and Samsung Heavy Industries gained 0.87 percent to 23,150 won.
The local currency ended at 1,182.5 won against the greenback, unchanged from
Friday's close. The currency fell as low as 1,195 won as CIT's bankruptcy filing
led investors to shun riskier assets, dealers said.
Bond prices, which move inversely to yields, closed higher. The return on
three-year Treasuries declined 0.01 percentage point to 4.43 percent and the
benchmark yield on five-year government bonds fell 0.01 percentage point to 4.93
percent.
sam@yna.co.kr
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