Seoul Stocks Drop On Nasdaq Tumble

Seoul stocks fell Wednesday, led by large-cap technology stocks, after the U.S. Nasdaq market tumbled overnight to a seven-week low. The Korea Composite Stock Price Index lost 14.21 points, or 2.33 percent, to close at 594.53.

Trade volume was 4.39 million shares, valued at 2.43 trillion won ($1.93 billion).

The brokerage sector, which had attracted investors on prospective benefits from lower interest rates, dropped sharply on profit taking.

The hardest hit were leading telecommunications shares. Foreign and institutional investors fled from those stocks after their counterparts on Wall Street were battered by analysts' cuts of earning forecasts. SK Telecom tumbled 8.15 percent to 214,000 won. Korea Telecom lost 4.66 percent, finishing at 65,500 won.

Local chip makers were also hurt, after the industry benchmark Philadelphia Stock Exchange Semiconductor Index plunged 7.5 percent. Samsung Electronics declined 1.89 percent to 208,000 won. Hyundai Electronics Industries shed 4.90 percent, ending at 4,080 won. Pohang Iron & Steel Co. was down 1.02 percent to 97,000 won. Korea Electric Power Corp. dropped 1.73 percent, to close at 25,600 won.

Losing issues outnumbered gainers 386 to 372. A total of 36 shares rose by the daily limit of 15 percent and 12 issues touched the downward limit.

The woes on Wall Street also dampened the Kosdaq market. The composite index closed at 85.25, down 2.40 points, or 2.74 percent.

Declining issues overwhelmed advancers 378 to 194. Forty-eight issues jumped by the daily limit of 12 percent and 14 shares fell by that limit.

Volume was heavy at 691 million shares. The value of traded stocks was 2.68 trillion won.

Investors sold off large-cap telecom shares. KT Freetel plunged 7.31 percent to 41,200 won. KT M.Com shed 5.45 percent, ending at 9,880 won. Dot-coms were also weak; Serome Technology, Daum Communication and Haansoft lost 4 to 7 percent.

by Moon So-young