Wall Street Carnage Engulfs Seoul Mart

Korean stocks suffered another battering Tuesday after the Nasdaq's meltdown overnight in the United States sparked a massive foreign sell-off in financial and blue-chip shares, analysts said.

The benchmark Korea Composite Stock Price Index lost 17.08 points, or 3.13 percent, to 527.97. It spent the whole day in negative territory, as foreign investors sold shares worth more than 150 billion won ($120 million), the largest amount so far this year.

Overall trading volume shrank to 358 million shares valued at 1.62 trillion won. Decliners overwhelmed risers 731 to 114, and 20 other stocks finished unchanged. Thirty issues tumbled by the daily limit of 15 percent; 20 shares rose by that limit.

The main index bore the brunt of the carnage on Wall Street, where the Nasdaq index plunged to 1,923.38, the lowest level in more than two years, due to mounting concern about the health of the U.S. economy, analysts said.

The Kosdaq market was also battered by the Nasdaq's tumble. Its composite index shed 3.76 points, or 5.19 percent, to close at a two-month low of 68.57.

Losses were seen across the board on the main Korea Stock Exchange. Large-capitalization stocks led the market's decline. Pohang Iron & Steel Co. sank 6.12 percent to 92,000 won, and Samsung Electronics Co. was off 0.82 percent at 182,000 won.

Hyundai Group shares were sharply lower on worries about liquidity problems at some of its highly-indebted affiliates. Hyundai Electronics Co. plunged to a record low finish of 3,000 won, down 12.02 percent on heavy foreign selling. Hyundai Engineering & Construction Co. dropped by the limit to end at 1,580 won.

Bank shares extended losses after Korea Exchange Bank and other lenders agreed to extend credit to the two ailing Hyundai units, raising concern over possible losses for the creditors.

Korea Exchange Bank, Hyundai's main creditor, slid 9.40 percent to 2,555 won. Kookmin Bank lost 5.23 percent to 14,500 won, and its merger partner, H&CB, fell 5.24 percent to 22,600 won.

Brokerage shares were not spared by the bear. Good Morning Securities Co. shed 11.94 percent to 4,500 won, and Samsung Securities Co. dropped 13.37 percent to 28,500 won.

On the Kosdaq market, technology and Internet shares plunged. KT Freetel fell 2.06 percent to 38,000 won, and Haansoft lost 4.58 percent to 5,630 won. Internet Auction tumbled 8.29 percent to 19,900 won.

by Kim Hyun-chul