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Seoul shares slip on renewed economic woes

Nov. 9, 2012 - 20:41 By Korea Herald
South Korean stocks closed 0.52 percent lower on Friday as investor sentiment was dampened by resurfacing uncertainties over the economic recovery, analysts said. The local currency rose against the U.S. dollar.

The benchmark Korea Composite Stock Price Index shed 10.00 points to finish at 1,904.41. Trading volume was heavy at 628.2 million shares worth 4.74 trillion won ($4.35 billion) with decliners outpacing advancers 444 to 360.

“Investors hate uncertainties. Now with the U.S. election over and done with, they find themselves still locked in weak corporate figures and the fiscal cliff. There’s a lot at stake before the market really takes off,” said Kim Chul-joong, an analyst at Korea Investment & Securities Co.

The main index breached the 1,900-point mark as retail and institutional investors bought a combined net 241.2 billion won.

Foreigners, however, sold off a net 267.3 billion won. Tech blue-chips and bank shares drove down the shares, with chipmaker SK hynix falling 2.50 percent to 25,400 won and Korea Exchange Bank declining 2.59 percent to 7,530 won.

Market bellwether Samsung Electronics slipped 0.67 percent to 1,341,000 won.

Kia Motors, an automaker affiliated with industry leader Hyundai Motor, shed 1.57 percent to 56,600 won, following news reports that both companies have been sued by U.S. consumers for some $775 million over its fuel-efficiency scandal. Its auto parts-making affiliate Hyundai Mobis also slumped, but the impact was limited as Hyundai Motor reverted to gain 0.47 percent to 214,000 won after starting lower.

In contrast, textile firms and airlines finished higher. LG Fashion shot up 5.32 percent to 29,700 won, with Korean Air Lines climbing 2.44 percent to 48,200 won.

The local currency ended at 1,087.60 won against the greenback, up 1.7 won from Thursday’s close, continuing its recent appreciation, dealers said.

(Yonhap News)