Markets Are Off In Sluggish Day

Seoul stock markets resumed their declines Monday as investors turned cautious. The Korea Composite Stock Price Index again dropped below 500. Turnover on the main board was the lowest in about 25 months.

The market started weak, after Wall Street lost ground Friday on earnings warnings from several U.S. technology companies. "As more U.S. earnings warnings are expected to be issued this week, investors in the local market have become more cautious," said an analyst at Daishin Securities.

The Japanese yen's sharp drop also dragged down the market. The Kospi closed Monday at 497.46, down 8.76 points, or 1.73 percent.

Trade volume was extremely thin at 279 million shares. The value of traded stocks was only 915 billion won ($683 million), the lowest since March 4, 1999. Foreign, institutional and retail investors all unloaded their holdings.

Core blue chips were generally weak. Samsung Electronics lost 3.39 percent, ending at 185,500 won. Hynix Semiconductor plunged 5.41 percent to 2,800 won.

Korea Electric Power Corp. declined 2.97 percent to 19,600 won. SK Telecom shed 3.17 percent, finishing at 168,000 won. Pohang Iron & Steel squeezed out a gain of 0.97 percent, to end at 93,700 won.

Declining issues led advancers 576 to 230. Twenty-two shares rose by the daily limit of 15 percent and five fell by that limit.

The Kosdaq market also ended a one-day rally Monday. The composite index lost 1.70 points, or 2.56 percent, to close at 64.81.

The trade volume was thin at 254 million shares and the turnover was 916 billion won, its lowest since January 2.

Most leading telecommunication shares lost. KT Telecom shed 1.80 percent, to 38,200 won. KT M.Com slipped 0.94 percent to 9,450 won.

Large dot-coms were especially weak. Serome Technology tumbled 8.22 percent. Daum Communications lost 5.74 percent and Haansoft plunged 6.35 percent.

Twenty-one issues fell by the daily limit of 12 percent, while 17 shares hit the downward limit. Losing issues overwhelmed gainers 447 to 128.

by Moon So-young