Stocks Edge Off In Active Trading

Share prices in Seoul extended their losses Thursday, battered by the latest decline on Wall Street and a weakening Korean won.

The Korea Composite Stock Price Index shed 5.54 points, or 1.04 percent, to 527.05. Trading was active, with 402 million shares valued at 1.59 trillion won ($1.21 billion) changing hands.

Declining issues topped advancers 522 to 285, with 58 other stocks unchanged. Five shares tumbled by the daily limit of 15 percent, while 33 stocks shot up by that limit.

Off to a bearish start, the index remained in negative territory for the day, as heavy foreign selling in the futures market triggered a wave of program selling on the main exchange. Foreign investors sold a record 6,222 futures contracts.

Sentiment was also dampened by the weakness of the Korean currency, which slid to 1,318.6 won to the U.S. dollar, a level not seen since late 1998.

Samsung Electronics Co. added 2.84 percent to 199,000 won, buoyed by heavy foreign purchases.

Most other large-caps were sharply lower. SK Telecom lost 1.49 percent to 199,000 won, and Pohang Iron & Steel Co. fell 1.54 percent to 89,500 won. In particular, Korea Electric Power Corp. plunged 6.35 percent to 19,900 won, its lowest point since October 1998. "It fell because of concern that the won's slide will increase import costs for raw materials and borrowing costs," said Kim Sang-chul, an analyst at Meritz Securities Co.

Wednesday's death of Chung Ju-yung, former chairman and founder of the Hyundai Group, apparently had little effect on affiliates' share prices.

Cash-strapped Hyundai Electronics Industries Co. inched up 0.33 percent to end trading at 3,000 won, and Hyundai Engineering & Construction Co. added 4.45 percent to 1,525 won. "Investors expect his death to speed a breakup," Mr. Kim said.

The Kosdaq composite index was off 0.63 points, or 0.88 percent, at 70.64. Volume shrank to 296 million shares valued at 1.47 trillion won. Korea Telecom Freetel fell 0.51 percent to 39,300 won.

by Kim Hyun-chul