Seoul shares plunge 2.2 pct on euro zone fears

SEOUL, July 12 (Yonhap) -- South Korean stocks tumbled 2.2 percent on Tuesday as investor sentiment took a blow from growing fears that Greece's debt crisis may spread to Italy and Spain. The local currency fell sharply against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) plunged 47.43 points to 2,109.73. Trading volume was moderate at 283 million shares worth 6.1 trillion won (US$5.7 billion), with losers far outnumbering gainers 685 to 161.
"Offshore investors went on a selling spree amid rising concerns that the euro zone debt crisis will worsen," said Lee Kyung-soo, an analyst at Shinyoung Securities Co. "They also seem to be locking in their profits following the KOSPI's recent climb."
Foreigners offloaded a net 391.1 billion won, snapping their nine-session buying streak.
Shares lost ground across the board, with large-cap exporters bearing the brunt of the decline. Samsung Electronics, the world's top maker of memory chips and liquid crystal display (LCD) panels, lost 1.73 percent to 850,000 won.
Automakers also underwent sharp losses on worries the euro zone woes would impact their sales in the region. Hyundai Motor lost 3.14 percent to 231,500 won, and its affiliate Kia Motors slumped 4.01 percent to 71,800 won. The two automakers together were the best-selling Asian automaker brand in Europe this year as of end-May.
Brokerages were also weighed down by poor market sentiment. Daewoo Securities, the country's No. 2 brokerage by market cap, lost 5.07 percent to 17,800 won.
The local currency closed at 1,066.5 won to the greenback, down 8.7 won from Monday's close, due mainly to the KOSPI's plunge and the euro's fall against the U.S. currency, dealers said.
mil@yna.co.kr