Seoul shares end down 1.83 pct ahead of holiday

SEOUL, Sept. 9 (Yonhap) -- South Korean stocks finished 1.83 percent lower Friday, as the U.S. president's US$447 package to create jobs and boost economic growth failed to dispel market concerns over the U.S. economy, analysts said. The local unit fell against the U.S. dollar.
Snapping the two-day winning streak, the benchmark Korea Composite Stock Price Index (KOSPI) slumped 33.71 points to 1,812.93. Trading volume was moderate at 327 million shares worth 5.45 trillion won ($5.12 billion) with losers leading gainers 507 to 306.
"Financial markets did not respond positively to Obama's job speech as expectations were reflected in the market's rises in the previous sessions," said Lim Dong-rak, an analyst at Hanyang Securities Co.
On Thursday evening, U.S. President Barack Obama urged the U.S. Congress to pass the larger-than-expected package to create employment and to invigorate the stalled economic growth.
"Investors were cautious about a possible deterioration in macro news flows during the upcoming holiday," Lim added.
While South Korean financial markets will be shuttered through Tuesday for the four-day Chuseok holiday, financial ministers and central bank governors from the group of seven countries are set to meet in Europe over the weekend to discuss ways to tackle eurozone public debts.
Financial companies and banks led the KOSPI's fall. KB Financial Group, parent of the top lender Kookmin Bank, sank 4.63 percent to 40,150 won and Woori Finance Holdings slid 3.83 percent to 10,050 won.
Consumer electronics makers also lost ground as brokerages downgraded their earnings outlooks on the economic slowdown. LG Electronics lost 4.62 percent to 62,000 won and Samsung Electronics declined 2.26 percent to 780,000 won ahead of a German court's ruling whether to ban sales of its Galaxy tablet computers in Germany.
Chipmaking giant Hynix Semiconductor, however, rose 3.11 percent to 19,900 won on expectations that it will benefit from chip production cuts of its smaller rivals.
The local currency closed at 1,077.3 won to the greenback, down 2.2 won from Thursday's close, as offshore investors reduced holdings of local stocks, dealers said.
ylee@yna.co.kr