Seoul shares end down 0.99 pct on economic uncertainties

By Lee Youkyung
SEOUL, Dec. 17 (Yonhap) -- South Korean stocks closed 0.99 percent lower Thursday
as institutional investors unloaded large-cap shares on economic uncertainties,
analysts said. The local currency fell against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) slid 16.4 points to
1,647.84. Volume was light at 372 million shares worth 4.23 trillion won (US$3.59
billion) with losers outnumbering gainers 436 to 335.
"Although the U.S. Federal Reserve froze interest rates, investors did not view
its comments about the economy as positive," said Lawrence Kim, an analyst at
Woori Investment & Securities.
The widely expected interest rate freeze by the Fed on Wednesday failed to
provide fresh momentum to the market, analysts said.
"The Federal Open Market Committee confirmed its previous position at its regular
meeting held on Wednesday," said Lim Dong-min, an analyst at KB Investment &
Securities. "It is hard to see the result of FOMC's meeting as a catalyst for a
bull run."
Most sectors finished in negative territory with financial shares taking the
biggest losses. KB Financial Group, the leading financial firm, fell 2.25 percent
to 60,800 won and Woori Finance Holdings lost 1.92 percent to 15,300 won.
Builders ended lower as a recent series of credit downgrades in various countries
prompted concerns about reduced overseas orders, analysts said. Daewoo
Engineering & Construction slid 2.69 percent to 12,650 won while GS Engineering &
Construction Corp. sank 3.08 percent to 110,000 won.
Auto exporters finished higher, however, as investors expected that a falling won
would boost sales overseas. Leading automobile maker Hyundai Motor Co. rose 0.45
percent to 111,500 won and its smaller affiliate Kia Motors Corp. advanced 1.53
percent to 19,900 won.
Ssangyong Motor surged nearly 14 percent following the court's approval, but the
share trading were suspended at 2:40 p.m. on the decision to reduce the
carmaker's capital by more than 10 percent. The trading will resume on Friday,
the Korea Exchange said.
The local currency closed at 1,177.9 won to the U.S. dollar, down 13 won from
Wednesday's close, as lingering uncertainties about the economy led investors to
bet on safer assets, dealers said.
ylee@yna.co.kr
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