Seoul stocks end 1.75 pct lower on correction fears

(ATTN: ADDS bond yields at bottom)
SEOUL, Nov. 5 (Yonhap) -- South Korean stocks closed 1.75 percent lower Thursday
as large caps suffered a correction on liquidity jitters, analysts said. The
local currency fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) plunged 27.69 points to
1,552.24. Volume was light at 201.3 million shares worth 3.3 trillion won (US$2.8
billion) with losers outpacing gainers 608 to 194.
The key index wiped out most of Wednesday's gain which ended a six-day losing
streak as foreign investors turned net sellers after four sessions of net
purchases while institutional investors extended their sell-offs.
"Local stocks are undergoing a correction which started late September on worries
over liquidity tightening and rising interest rates," said Lim Dong-min, an
analyst at KB Investment & Securities.
Big-cap exporters, which had contributed to the recent market rallies, led the
market tumble as foreign investors pocketed profits.
Memory-chip giant and market heavyweight Samsung Electronics slid 2.86 percent to
712,000 won and smaller rival Hynix Semiconductor slumped 3.42 percent to end at
18,350 won.
Biggest automaker Hyundai Motor plunged 5.93 percent to 16,650 won on shrinking
market share in the U.S in October.
Top construction equipment maker Doosan Heavy Industries & Construction plunged
8.58 percent to 59,700 won after reporting on Wednesday a net loss for the third
quarter.
Second-largest financial company Woori Finance Holdings, however, rose 1.27
percent to 16,000 won on improved earnings expectations down the road.
The local currency finished at 1,179.8 won to the U.S. dollar, down 1.4 won from
Wednesday's close, as overseas investors unloaded the won after cutting stock
holdings, dealers said.
Bond prices, which move inversely to yields, closed higher. The return on
three-year Treasuries shed 0.01 percentage point to 4.46 percent and the
benchmark yield on five-year government bonds also declined 0.01 percentage point
to 4.97 percent.
pbr@yna.co.kr
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