Seoul stocks end 2.8 pct down on U.S. falls

(ATTN: ADDS bond yields at bottom)
By Park Bo-ram
SEOUL, June 23 (Yonhap) -- South Korean stocks closed 2.8 percent lower Tuesday
as overnight U.S. tumbles prompted a foreign selling spree, analysts said. The
local currency plunged against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) tumbled 39.17 points to
1,360.54, the lowest level since April 29. Volume was moderate at 489.8 million
shares worth 4.8 trillion won (US$3.7 billion), with losers outpacing gainers 731
to 105.
"Wall Street losses hammered the local key index by fueling extensive futures
sell-offs by foreign investors," said Kim Young-joon, an analyst at SK
Securities. "Foreign investors were wary of a potential tightening of U.S.
monetary policy as they await a rate decision from the Fed this week."
U.S. shares ended sharply lower on Tuesday with the Dow Jones industrial average
plunging 2.35 percent after the World Bank's downgrade of a global growth
forecast dimmed recovery hopes.
Steel makers and builders led the local decline.
Top builder Daewoo Engineering & Construction plunged 7.05 percent to 11,200 won
and Hyundai Engineering & Construction also closed 5.16 percent lower to 57,000
won.
Leading steelmaker POSCO shed 3.79 percent to 406,000 won after reporting price
hikes on some steel products, citing higher material costs and demand.
Financial shares also took a beating with Woori Finance Holdings, the top
financial services firm, sliding 4.98 percent to end at 10,500 won. Hana
Financial Group, the fourth-largest financial holding company, slumped 5.55
percent to 25,550 won.
Shipping lines lost ground as investors expected flagging freight rates may
dampen their profits. Top bulk-shipper STX Pan Ocean dropped 8.43 percent to
11,400 won and top container carrier Hanjin Shipping also fell 6.88 percent to
16,250 won.
The local currency ended at 1,290.8 won against the dollar, down 16.3 won from
Monday's close. The local unit extended its losing streak to a fifth session as
foreign stock selling reduced the currency's demand.
Bond prices, which move inversely to yields, closed higher. The return on
three-year Treasuries dropped 0.08 percentage point to 4.12 percent and the
benchmark yield on five-year government bonds also declined 0.05 percentage point
to 4.70 percent.
pbr@yna.co.kr
(END)