Seoul stocks end down 0.57 pct on steel, finance losses

(ATTN: ADDS bond yields at bottom)
SEOUL, June 17 (Yonhap) -- South Korean stocks closed 0.57 percent lower
Wednesday as sliding U.S. markets raised fears that an economic recovery will
take more time than expected, sparking selloffs in steel and financial shares,
analysts said. The local currency fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) slid 7.98 points to
1,391.17. Volume was moderate at 448.2 million shares worth 4.54 trillion won
(US$3.6 billion), with losers outpacing winners 554 to 261.
"After moving in a tight range, the index ended in negative territory as investor
sentiment remained fragile mainly due to overnight falls in U.S. markets and less
active purchases by foreigners," said Choi Soon-ho, an analyst at Eugene
Investment & Securities.
Foreigners trimmed holdings for a third consecutive day, with net sales amounting
to around 160 billion won. Institutions also dumped shares but retailers remained
sole net buyers.
Steelmakers ended lower. Industry leader POSCO dropped 1.28 percent to 423,500
won and smaller Hyundai Steel fell 1.49 percent to 59,600 won.
Financial shares were also dented. KB Financial Group, which controls top lender
Kookmin Bank, shed 3.59 percent to 40,300 won. No. 1 brokerage Samsung Securities
fell 1.87 percent to 68,200 won.
Tech shares, however, ended sharply higher. Samsung Electronics, the world's No.
1 computer memory-chip maker, jumped 1.77 percent to 575,000 won. Smaller rival
Hynix Semiconductor surged 3.4 percent to 13,700 won.
Telecoms continued their rallies. LG Telecom climbed 5.09 percent to 8,880 won
after Deutsche Bank raised its target price citing its growth potential.
On Tuesday, Wall Street closed down for a second straight day as a
steeper-than-expected slide in industrial output dimmed outlooks for a quick
economic recovery. The Dow Jones industrial average dropped 1.25 percent and the
tech-laden Nasdaq composite index also slid 1.11 percent.
The local currency ended at 1,259.8 won to the dollar, down 2.3 won from
Tuesday's close, as demand grew for safer bets amid falling local stocks, dealers
said.
Bond prices, which move inversely to yields, closed higher. The return on
three-year Treasuries fell 0.01 percentage point to 4.24 percent, while the
benchmark yield on five-year government bonds plunged 0.03 percentage point to
4.78 percent.
kokobj@yna.co.kr
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