Seoul shares down 3.53 pct on earnings, geopolitical woes

SEOUL, July 13 (Yonhap) -- South Korean stocks closed down 3.53 percent Monday as
investors dumped shares on cloudy earnings outlooks and renewed geopolitical
concerns following rumors over the health of North Korean leader Kim Jong-il,
analysts said. The local currency plunged against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) tumbled 50.5 points to
1,378.12, the first close below the 1,400-point mark this month. Volume was
moderate at 437.9 million shares worth 4.91 trillion won (US$3.73 billion), with
losers outpacing winners 715 to 110.
"Investors seemed to expect little momentum from upcoming corporate earnings
reports enough to sustain the market," said Choi Soon-ho, an analyst at Eugene
Investment & Securities. "Spreading rumors over Kim Jong-il's health conditions
also weighed on the market sentiment."
South Korean all-news cable channel YTN reported earlier in the day that North
Korean leader Kim Jong-il suffers a life-threatening pancreatic cancer, citing
intelligence sources in Seoul and Beijing.
Kim's health conditions usually draw keen attention as his death without a
successor might spark geopolitical instability. The South Korean government has
yet to confirm the report.
Foreign investors dumped shares, with their net sale amounting to around 230
billion won. Institutions joined the massive sale, overwhelming retail investors
who picked up shares worth some 370 billion won for bargain hunting.
Tech shares were severely dented. Industry leader Samsung Electronics plunged
3.88 percent to 620,000 won, while smaller tech giant LG Electronics closed 3.95
lower at 121,500 won.
Financial shares added to the declines. KB Financial Group, the parent for top
lender Kookmin Bank, fell 4.9 percent to 44,650 won. Major brokerage Mirae Asset
Securities dropped 4.16 percent to 66,800 won.
Shipbuilders and automakers were also among the sharp decliners. No. 1 shipyard
Hyundai Heavy Industries dived 5.03 percent to 179,500 won, while leading
carmaker Hyundai Motor dropped 3.23 percent to 74,800 won.
The local currency ended at 1,315 won against the greenback, down 32.3 won from
Friday's close and the lowest level since April 29, when it fell to 1,340.7 won.
The tumble was sparked by rumors over the health of the North Korean leader,
which caused investors to seek safer bets, dealers said.
kokobj@yna.co.kr
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