Stocks Hit Skids, 5-Day Rise Ends

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Stocks Hit Skids, 5-Day Rise Ends

Share prices on the Korea Stock Exchange ended a five-day win streak Friday, with the Korea Composite Stock Price Index down 2.33 percent on heavy foreign and futures-linked program selling.

The benchmark index fell 13.52 points to close at 565.76, off a high of 573.67 and exceeding a low of 562.53. With many investors withdrawing to the sidelines, trading volume reached just 316 million shares, valued at 1.42 trillion won ($ 1.12 billion).

Retreating issues nosed out gainers 400 to 398, with 65 other stocks unchanged. Just one stock fell by the daily limit of 15 percent; 34 shares shot up by that limit.

"Investor sentiment deteriorated rapidly, after the U.S. Nasdaq index headed south overnight amid profit warnings on technology stocks such as Intel Corp. and Yahoo," said an analyst at Daishin Securities Co. "In addition, a weaker futures market sparked a wave of program selling to the tune of 100 billion won."

Semiconductor shares fell after Intel, the world's largest chipmaker, reported that first-quarter sales will miss forecasts, as the slowing U.S. economy erodes demand for personal computers and network equipment. Samsung Electronics shed 4.24 percent to 192,000 won; Hyundai Electronics Industries Co. lost 3.75 percent to 3,335 won, a record low for those shares.

Pohang Iron & Steel Co. edged up by half a percentage point to end at 101,500 won, but most other large blue chips were lower.

Pharmaceutical issues and merchant bank shares rallied. Handok Pharmaceuticals Co. jumped by the daily limit to 33,900 won, and Tong Yang Investment Bank rose 2.66 percent to 1,350 won on reports that it will merge with Hyundai Ulsan Merchant Bank by the end of this month.

The Kosdaq composite index also closed lower, hit by the Nasdaq's decline. It shed 1.44 points, or 1.84 percent, ending at 76.56. Volume was heavy at 341 million shares valued at 1.82 trillion won.

Most large-capitalized stocks wound up the day in negative territory. KT Freetel was off 2.78 percent at 40,150 won, and Serome Technology sank 6.73 percent to 19,400 won.


by Kim Hyun-chul

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