Seoul shares end 1.04 pct lower on eurozone woes

SEOUL, Sept. 19 (Yonhap) -- South Korean stocks ended 1.04 percent lower on Monday as investor sentiment remained fragile on nagging concerns about the eurozone debt crisis, analysts said. The local currency hit a nine-month low against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) fell 19.16 points to close at 1,820.94, the first decline in three sessions. Trading volume was moderate at 331.5 million shares worth 4.92 trillion won (US$4.4 billion) with losers outpacing gainers 567 to 264. "The local currency's sharp loss to the dollar and rumors about Greece's imminent default chilled investor sentiment throughout the session," said Bae Sung-young, an analyst at Hyundai Securities Co. "But hopes for this week's Federal Reserve policy session and the meeting of G20 finance chiefs prevented the key index from falling further. Market volatility, however, will be inevitably high this week." EU finance ministers held a meeting in Poland over the weekend but failed to come up with solutions to the deepening eurozone sovereign debt crisis. This week, investors are likely to focus on what kind of stimulus steps the Federal Reserve will lay out at a two-day policy meeting. A meeting of finance chiefs from the Group of leading 20 nations will be under the spotlight to gauge what G20 members will do to stem the contagion of the eurozone debt crisis. The KOSPI declined as much as 1.47 percent at one point, but it curtailed earlier losses as institutional and retail investors remained net buyers of local stocks. Foreign investors reversed earlier sell-offs by buying a net 2.7 billion won. The eurozone debt crisis revived investors' appetite for safe assets, causing the local currency to depreciate 2.15 percent per dollar. Chip giant Hynix Semiconductor fell 4.11 percent to 21,000 won and power monopoly Korea Electric Power Corp. shed 0.9 percent to 21,900 won, hit by last week's massive blackouts that left millions of homes without electricity for hours. Shipbuilder STX Group rose 3.82 percent to 16,300 won, however, on rumors that the group may pull out of its bid to buy Hynix Semiconductor due to higher takeover risks. Its bidding rival SK Telecom lost 3.45 percent to 154,000 won. Bank shares were under selling pressure as investors gauged how the regulator's suspension of seven ailing savings banks would affect the banking sector. Top financial services company KB Financial Group rose 1.69 percent to 39,200 won while No. 4 banking group Hana Financial Group fell 1.01 percent to 34,250 won. The local currency closed at 1,137 won to the greenback, down 24.5 won from Friday's close, as offshore investors snapped up the greenback on Europe's debt crisis, dealers said. The won extended its earlier losses in late trading on market rumors that Greece is set to default on its debt. The local currency fell to the lowest level since Dec. 29, 2010.