Markets Struggle To Eke Out Gains

Seoul's stock markets squeezed out tiny gains Friday after two-day declines.

Retail and institutional investors hunted for bargains on the main board, but foreign investors unloaded shares for the third consecutive day as the U.S. Nasdaq continued to fall.

The Korea Composite Stock Price Index added a tenth of a point to close at 583.52. Trade volume was 4.01 million shares valued at 2.12 trillion won ($1.70 billion).

Gaining issues led losers 591 to 302. A total of 37 shares jumped 15 percent, touching the daily ceiling. Six issues hit the floor.

Core blue chips generally gained. Foreign investors rushed to Pohang Iron & Steel Co., on expectations that the steelmaker will repurchase and retire some of its shares. The stock price hit 99,000 won, its highest this year, up 2.06 percent.

Bargain hunting drove up telecommunication stocks. SK Telecom rose 3.66 percent to 212,500 won. Korea Telecom added 1.97 percent, ending at 67,300 won.

But index heavyweight Samsung Electronics declined 4.24 percent to 192,000 won, curbing the stock market's upward movement, as foreign investors fled. "Foreigners have begun to reduce their weighting of semiconductor stocks, as analysts have cut earning forecasts for technology stocks on the Nasdaq market," an analyst at Daishin Securities said.

The Kosdaq composite index closed at 80.57, up 0.39 points, or 0.49 percent.

Trade volume declined sharply to 424 million shares as foreign investors withdrew to the sidelines. The value of the traded stocks was 1.97 trillion won.

Leading telecommunication and dot-com shares rebounded. KT Freetel rose 2.24 percent to 41,100 won. KT M.Com gained 1.89 percent, ending at 9,680 won. Daum Communications jumped nearly 6 percent. Serome Technology and Haansoft added about 3 percent. Advancing issues nosed out decliners 288 to 284. Thirty-five issues rose by the daily limit of 12 percent and 24 shares fell by that limit.

by Moon So-young