Seoul stocks end 0.33 pct lower on auto losses

By Lee Youkyung
SEOUL, Jan. 5 (Yonhap) -- South Korean shares closed 0.33 percent lower Tuesday
as the strengthening local currency prompted concerns about exporters' earnings
prospects, analysts said. The local currency gained sharply against the dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) declined 5.52 points to
1,1690.62, after briefly touching the 1700-mark in early trading. Volume was
moderate at 402 million shares worth 6.69 trillion won (US$5.87 billion) with
losers leading gainers 419 to 354.
"Investors bought the local currency on beliefs that Korea's economic
fundamentals are solid and financial markets are stabilizing," said June Park, an
economist at Woori Investment & Securities.
Automotive exporters were hurt most by the won's ascent as it could make their
prices less competitive than their Japanese rivals'. Top automaker Hyundai Motor
Co. tumbled 7.56 percent to 110,000 won while its affiliate Kia Motors Corp lost
5.53 percent to 19.650 won.
Shares of Kumho Tire nosedived the daily limit of 15 percent 3,065 won as its
cash-strapped mother company Kumho Asiana Group announced restructuring plans.
Technology companies, however, lent support to the market as investors expected
improving U.S. consumer confidence will boost their profits. Market leader
Samsung Electronics gained 1.61 percent to 822,000 won and LG Innotek, a
subsidiary of LG Group, jumped 9.61 percent to 109,500 won.
The local currency closed at 1,140.50 won to the U.S. dollar, up 14.30 won from
Monday's close and the strongest level since late September 2008, as offshore
investors increased their holdings of local shares, traders said.
ylee@yna.co.kr
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