Tech Stocks Key Seoul Mart Slide

Losses in Samsung Electronics Co. and other key technology stocks sent the Seoul market lower Monday after lackluster trading, as investors stepped to the sidelines amid concerns over first-quarter corporate earnings to be released soon by U.S. companies

The Korea Composite Stock Price Index shed 7.75 points, or 1.5 percent, to 508.35, off a high of 518.26.
Trading was slow with 329 million shares changing hands. Daily turnover slackened to 918 million won ($690,000), the lowest this year.

Declining issues outnumbered gainers 420 to 371, with 67 other stocks unchanged.

Seven shares tumbled by the daily 15-percent limit, while 30 stocks jumped by that limit.

"Foreign investors were sidelined due to uncertainties over the direction of the U.S. Nasdaq market and planned earnings reports by U.S. firms," said Park Suk-hyun, an analyst at Kyobo Securities Co.

A number of U.S. technology bellwethers are scheduled to report their earnings results this week, including Intel Corp. on Tuesday and International Business Machines Corp. on Wednesday.

Key blue chips finished lower to weigh down the index. Samsung Electronics Co. lost 3 percent to 197,000 won.

Hynix Semiconductor Inc., formerly known as Hyundai Electronics Industries Co., hit a new low at 2,505 won, down 2.3 percent.

SK Telecom Co. slid 4.4 percent to 183,500 won after Korea Telecom Corp. said it may sell 3 percent of its 13.4-percent stake in Korea's largest mobile phone service provider, a move that is feared to cause further decline in SK's share price.

Declining bank and brokerage stocks added to the day's losses. Kookmin Bank was off 3.4 percent at 13,000 won, and its merger partner, H&CB, dropped 2.3 percent to 21,600 won.

Good Morning Securities Co. dipped 1.1 percent to 4,590 won.

The Kosdaq market also turned lower after three consecutive days of gains. Its composite index slipped 0.55 point, or 0.8 percent, to 68.07.

Among large stocks, Korea Telecom Freetel fell 2.8 percent to 38,500 won, while LG Telecom Co. sank 4.2 percent to 4,600 won.

by Kim Hyun-chul