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Seoul shares dip 1.52 pct on policy woes

June 5, 2013 - 15:56 By KH디지털3

South Korean stocks sank 1.52 percent Wednesday as lingering uncertainties on monetary policies of major economies made investors jittery, analysts said. The local currency gathered ground against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) retreated 30.32 points to close at 1,959.19. Trading volume was moderate at 326.3 million shares worth 3.93 trillion won (US$3.49 billion) with decliners far outpacing gainers 644 to 178.
"With the U.S. talking about tapering its quantitative easing ahead of a European Central Bank policy meeting on Friday, investors got unnerved by market instability," said Lee Kyung-min, an analyst at Woori Investment & Securities Co.
The Beige Book to be released by the U.S. Federal Reserve on Thursday, local time, is another factor that keeps investors cautious of making risky bets, Lee added.
Foreigners and institutions dumped shares, bringing down the KOSPI, but offshore investors turned to net buyers right before the market closed, snapping up a net 2.98 billion won. Institutions unloaded 65.2 billion won.
Most stocks finished in negative territory, with auto-related manufacturers and air carriers leading the decline. No. 1 carmaker Hyundai Motor slid 2.09 percent to 210,500 won with its auto parts-making affiliate Hyundai Mobis falling 2.64 percent to 276,500 won. Leading air carrier Korean Air Lines tumbled 4.79 percent to 33,800 won.
Market bellwether Samsung Electronics dropped 1.23 percent to 1,521,000 won.
Shares of STX Group and its affiliates, the troubled shipping and shipbuilding conglomerate, plunged again on media reports that conflict between its creditor banks and the financial authorities is intensifying over how to salvage the group from a liquidity squeeze.
STX and its bulk shipping line STX Pan Ocean dived by the daily limit of 15 percent to 1,730 won and 2,565 won, respectively.  

In contrast, domestic-driven shares finished bullish. NHN Corp., the top Internet portal service provider, gained 1.2 percent to 296,000 and leading mobile carrier SK Telecom rose 1.71 percent to 208,000 won.
The local currency ended at 1,115.80 won against the greenback, down 6.4 won from Tuesday's close, largely due to a weaker dollar, dealers said. (Yonhap News)