Stocks Edge Up After Early Loss

Seoul stocks on the main board on Wednesday defied overnight tumbles on Wall Street. The Korea Composite Stock Price Index gained 1.00 points, or 0.19 percent, to close at 532.59.

The stock market started bearish, after investors unloaded New York stocks in disappointment at the U.S. Federal Reserve's half a percentage point interest-rate cut. A number of investors had hoped the Fed would lower the rate by a more aggressive three-quarters of a point.

The main market declined to nearly 520 at one point. But the sell-off eased as institutional investors began to hunt for bargains. Foreign investors sold on the spot market but purchased on the futures market, bringing in program-based buying on the spot market.

Trade volume was up to 365 million shares, valued at 1.36 trillion won ($1.05 billion).

Brokerage shares, which had been expected to benefit from a larger rate cut, were especially weak. Sejong Securities plunged 7.13 percent and Regent Securities lost 6.37 percent. Key blue chips closed mixed. Samsung Electronics climbed 1.31 percent to 193,500 won. Korea Telecom was up 0.52 percent to 57,500 won. Pohang Iron & Steel Co. shed 1.30 percent, ending at 90,900 won. SK Telecom slipped 0.49 percent to 202,000 won. Hyundai Electronics Industries declined 3.08 percent to 2,990 won.

Losing issues outnumbered gainers 455 to 362. Twenty-nine shares jumped 15 percent, touching the daily ceiling, and six fell to the floor.

The Kosdaq market ended marginally lower. The composite index shed 0.08 points, or 0.11 percent, to 71.27. Trade volume was slightly down to 319 million shares. The value of the traded stocks was 1.59 trillion won. Declining issues led advancers 336 to 226. A total of 28 shares jumped by the daily limit of 12 percent, while eight issues hit the downward limit.

Most large-cap telecommunication shares gained. KT Freetel was up 3.13 percent to 39,500 won. KT M.Com rose 2.89 percent to 9,600 won. Index heavyweight dot-coms were generally weak.

by Moon So-young