Shares Again Off On Foreign Sales

Share prices on the Korea Stock Exchange closed lower Wednesday, the second straight day of decline, on heavy foreign selling after the U.S. Nasdaq dropped again overnight to its lowest level in almost two years.

The Korea Composite Stock Price Index shed 11.12 points, or 1.87 percent, to end at 583.41, off a high of 589.30.

Trading volume was heavy at 435 million shares valued at 2.3 trillion won ($1.85 billion).

Declining issues overwhelmed gainers 595 to 233, with 37 other stocks unchanged. A total of 16 shares tumbled by the daily limit of 15 percent, while 32 issues rose by that limit.

In addition to the Nasdaq's weakness, investors were jittery about rising interest rates and fears of a sliding won against the U.S. dollar, analysts said.

Hit by the Nasdaq's fall, the Kospi plunged to as low as 571.72 during the day.

It regained some lost ground in afternoon trading as individual retail investors hunted for bargains and pension funds purchased large-cap stocks.

Leading the day's losses, Samsung Electronics Co., the biggest stock by market capitalization, fell 3.61 percent to 200,500 won.

SK Telecom Co. was also down 4.21 percent at 205,000 won, and Korea Electric Power Corp. lost 3.69 percent to 24,800 won.

In contrast, Korea Telecom Corp. turned higher in the last hour on news that its net profit almost tripled last year. It closed up 0.76 percent at 66,000 won.

Construction issues were slightly higher on rotational buying from retail investors.

Hyundai Engineering & Construction Co. was the most heavily-traded, up 6.92 percent at 2,550 won on volume of 42.9 million shares.

On the Kosdaq market, technology and Internet shares bore the brunt of the Nasdaq's fall, bringing the Kosdaq composite index down 5.94 percent to 80.18.

Key large-cap shares were mostly down, weighing heavily on the index. KT Freetel was off 2.43 percent to 40,200 won, and Hanaro Telecom lost 4.59 percent to 3,530 won.

Daum Inc., a popular Internet community site, dropped 6.61 percent to 31,800 won. Haansoft, a software developer, ended at 6,600 won, down 7.69 percent.

Volume shrank to 530 million shares worth 2.66 trillion won.

by Kim Hyun-chul