Seoul Markets Reel From New York Fall

A foreign sell-off in key tech shares sent Seoul's benchmark stock index to another new 2001 low Tuesday, led by Samsung Electronics Co. and SK Telecom Co.

The U.S. Nasdaq index dipped below the 1,800-point mark overnight, its lowest close since October 1998.

The Korea Composite Stock Price Index, or Kospi, sank 11.94 points, or 2.31 percent, to 503.26, after falling to 498.27 during the session. Trading volume remained thin at 278 million shares valued at 1.43 trillion won ($1.06 billion).

Losers overwhelmed gainers 666 to 158, with 39 other stocks unchanged. A total of 37 shares plunged by the daily limit of 15 percent, while 14 issues rose by that limit.

Investor sentiment was dampened by the decline on Wall Street. The Dow Jones industrials and Standard & Poor's 500 also fell by over 1 percent each.

Hit by heavy foreign selling, large blue-chip shares lost ground to pressure the index. Samsung Electronics shed 4.76 percent to 190,000 won, and SK Telecom slid 6.74 percent to 166,000 won, its lowest close since November 1999.

Korea Electric Power Corp. dropped 3.06 percent to 19,000 won on concern that the recent sharp fall in the won's value will increase its foreign-currency debt burden, which accounts for more than a third of its total borrowings.

Bank shares rallied to prop up the index. H&CB surged 7.62 percent to 22,600 won and its merger partner, Kookmin Bank, gained 5.04 percent to 14,600 won on reports that Korea's two most profitable lenders will go ahead with their marriage as planned, although they missed the March deadline for the signing of the merger contract.

The Kosdaq market extended its losses for a sixth consecutive day. Its composite index was off 2.05 points, or 3 percent, at 66.24. Korea Telecom Freetel slipped 0.65 percent to 38,450 won.

by Kim Hyun-chul