Wary Investors Balk on Rate Cut

The main stock market slipped Thursday on investors' mixed views on whether the recent interest rate cut will help the liquidity-driven rally continue. But the Kosdaq market rallied for the sixth consecutive trading day, closing at the highest point in four months.

"Though local interests rates have been lowered, little cash has been added in the stock market. Accordingly, optimism and skepticism conflict between investors," an analyst at Daishin Securities said.

Foreign investors bought on the main market for the fifth consecutive day, on the U.S. Nasdaq market's overnight gains. But retail and institutional investors took profits. Heavy program selling also dragged the market down.

The Korea Composite Stock Price Index closed at 603.63, virtually unchanged from Wednesday's close of 603.83.

Trade volume dropped to 360 million shares valued at 2.20 trillion won ($1.76 billion).

Losing issues outnumbered gainers 502 to 303. Twenty-five shares jumped by the daily limit of 15 percent and nine issues fell by that limit.

Core blue chips were generally weak. Pohang Iron & Steel Co. declined 1.03 percent to 95,700 won. SK Telecom shed 2.42 percent, finishing at 242,000 won. Korea Telecom was down 0.85 percent to 70,400 won. Korea Electric Power Corp. lost 1.30 percent, ending at 26,500 won.

But Samsung Electronics rose 3.77 percent to 206,500 won after U.S. semiconductor shares jumped overnight on Wall Street. Anam Semiconductor Inc. gained 7.87 percent to close at 4,800.

The Kosdaq composite index climbed 2.07 points, or 2.42 percent, ending at 87.38, on purchases by retail and institutional investors. Trade volume was heavy at 644 million shares. The value of the traded stocks was 3.69 trillion won.

Dot-coms were extremely strong on the rumor that a U.S. firm wants to acquire a local Internet-related company. Serome Technology, Daum Communication and Haansoft soared by the daily limit of 12 percent.

A total of 66 issues hit the daily ceiling, while five shares dropped the limit. Advancing issues led decliners 325 to 241.

by Moon So-young