Main Index Is Rattled By U.S. Stocks' Fall

Seoul's main stock market dropped below the 600-point mark Monday, battered by the U.S. Nasdaq market's 5-percent dive on Friday. But the Kosdaq market rebounded after a one-day drop as retail investors stepped in.

The Kospi closed at 596.67, down 8.25 points or 1.36 percent. Foreign investors ended a six-day buying spree, but the value of stocks they sold was relatively small at 24.1 billion won ($19.3 million).

Violent protests by unionized workers at Daewoo Motor Co. against the firm's sweeping job cuts made investors cautious. Trade volume was thin at 317 million shares, valued at 1.70 trillion won ($1.35 billion).

Gainers nosed out losers, 398 to 396. Forty-five shares jumped by the daily limit of 15 percent and seven issues fell by that limit.

Leading semiconductor issues were especially weak on disappointing U.S. industry news. Samsung Electronics declined 1.41 percent to 209,500 won. Hyundai Electronics plunged 5.83 percent to 4,200 won.

Other blue chips also lost. SK Telecom shed 3.47 percent, finishing at 236,500 won. Korea Telecom was down 2.83 percent to 68,600 won. Korea Electric Power Corp. dropped 1.73 percent, to close at 25,600 won.

The Kosdaq composite index climbed 0.97 points, or 1.12 percent, ending at 87.29.

Retail investors purchased while foreign and institutional investors sold. Trade volume was heavy at 537 million shares valued at 2.96 trillion won.

KT Freetel lost 4.10 percent and KT M.Com declined 3.57 percent. Serome Technology jumped 9.87 percent. Daum Communication rose 2.98 percent and Haansoft gained 1.79 percent.

A total of 104 issues soared by the daily limit of 12 percent as individual investors rushed to a number of small and medium-cap stocks; none hit the down limit. Advancing issues overwhelmed decliners 418 to 156.

by Moon So-young