Down-and-Up Day On Seoul Markets

Share prices in Seoul ended slightly lower Thursday, recouping much of their early losses, as foreign buying in the futures market triggered a wave of program purchases in large stocks, analysts said.

The benchmark Korea Composite Stock Price Index, or Kospi, lost as much as 3.8 percent during morning trading, hit by the crash in New York and Tokyo equity markets amid growing concerns over the slowing U.S. economy and Japan's ailing banking sector. However, a stronger U.S. Nasdaq futures market and a rebounding Nikkei index sparked bargain-hunting and rekindled foreign interest in local futures.

"In particular, news that the U.S. Fed may cut its key interest rate by a drastic 75 basis points helped improve investor sentiment," said an analyst at LG Securities Co.

The Kospi closed 1.45 points, or 0.27 percent, lower at 541.83, after moving between 542.30 and 522.74. Trading volume was heavy at 385 million shares, and the daily turnover amounted to 1.67 trillion won ($1.30 billion). Losers overwhelmed gainers 606 to 199, with 57 stocks un-changed. Three shares tumbled by the daily limit of 15 percent, while 19 jumped by the same limit.

Limiting losses, many large-caps were higher on foreign and program buying. Samsung Electronics Co. added 0.51 percent to 196,000 won, and Hyundai Motor Co. rose 2.42 percent to 16,900 won.

Bank and brokerage shares, which lost ground in the morning on worries over a possible collapse of Japan's financial system, recouped most of their losses. H&CB gained 1.48 percent to 24,000 won; Kookmin Bank shed 1.32 percent to 14,900 won; Good Morning Securities Co. was up 3.68 percent at 5,360 won.

The Kosdaq market also tumbled in early trading, but recovered some ground toward the day's close. Its composite index was off 1.11 percent to finish at 71.24. Volume stood at 396 million shares valued at 1.91 trillion won. KT Freetel dropped 2.05 percent to 38,200 won, while Daum Communications Corp. put on 1.89 percent to 27,000 won.

by Kim Hyun-chul