Seoul shares plunge 3.52 pct on Greek woes

SEOUL, Sept. 14 (Yonhap) -- South Korean stocks tumbled 3.52 percent on Wednesday as mounting fears over a Greek default spurred a selling spree, analysts said. The local currency nose-dived against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) dived 63.77 points to 1749.16, sinking below the 1,800 point level for the fourth straight session. Trading volume was moderate at 335 million shares worth 5.78 trillion won (US$5.25 billion) with losers far outnumbering gainers 755 to 106.
"It seems that investors see that the concern over a Greek default will likely materialize," said Lee Kyung-soo, a market analyst from Shinyoung Securities Co. "With fears looming ahead, they prefer safer assets, selling stocks."
Foreigners offloaded a net 640 billion won of stocks, extending their selling streak to a seventh session, while institutions and retail investors scooped up a combined 430 billion won of shares.
"A Greek default has been priced into the market already. But the situation changed a bit as Europe failed to show its ability to solve the problem for months," said Lee. "Foreign investors know that the South Korean market is vulnerable to foreign factors. They just sell shares before they lose any."
Financial companies and banks led the KOSPI's fall. KB Financial Group, parent of the top lender Kookmin Bank, sank 7.22 percent to 37,250 won and Woori Finance Holdings slid 8.76 percent to 9,170 won.
Consumer electronics makers also lost ground. LG Electronics lost 3.71 percent to 59,700 won and Samsung Electronics declined 3.46 percent to 753,000 won.
The local currency closed at 1,107.85 won to the greenback, down 30.55 won from Friday's close, as offshore investors reduced holdings of local stocks, dealers said. It was the biggest daily decline since the Korean unit tumbled 34.1 won on June 7, 2010.
South Korea's financial markets were closed for the Chuseok holiday on Monday and Tuesday.