Seoul Issues React To New York Drop

Seoul stocks fell on selling by foreign investors after the U.S. Nasdaq market sank overnight. The Korea Composite Stock Price Index closed Tuesday at 555.64, down 5.3 points, or 0.9 percent.

Trade volume was 347 million shares, valued at 1.56 trillion won ($1.19 billion). Foreign investors ended buying for nine consecutive trading sessions and unloaded 52.1 billion won of shares. But institutional and retail investors were net buyers.

Major chipmakers, whose shares recently firmed up, were especially weak after their counterparts on the Nasdaq market tumbled. Merrill Lynch cut ratings on many firms in the sector, including Intel. Samsung Electronics shed 3.1 percent, ending at 220,000 won. Anam Semiconductor plunged 5.9 percent to 4,525 won. Hynix Semiconductor tumbled 9.5 percent to 3,080 won, ending a four-day rally. Other key blue chips were mixed. SK Telecom added 1.4 percent to close at 218,000 won. Pohang Iron & Steel rose 0.8 percent to 91,300 won. Korea Telecom fell 1 percent to 57,900 won. Losing issues overwhelmed gainers 551 to 231. Twelve issues jumped by the daily limit of 15 percent and seven hit the downside limit.

The Kosdaq market also ended lower, but moderately, compared with the U.S. Nasdaq composite index's sharp drop. The composite index slipped 0.16 points, or 0.2 percent, to close at 75.72. Trade volume was 4.45 trillion won, heavier than on the main board. The daily turnover was 2.92 trillion won.

Leading telecommunications shares were mixed. KT Freetel rose 0.9 percent to 44,400 won. KT M.Com declined 0.9 percent to 10,800 won.

Halim and Maniker benefited again from concerns about foot-and-mouth disease. The nation's two largest fowl raising and processing firms soared by the daily limit of 12 percent. A total of 29 shares touched the daily ceiling and two hit the floor. Declining issues outnumbered advancers 350 to 207.

by Moon So-young