Benchmark Drops 2 Percent in Seoul

Share prices on the Korea Stock Exchange saw a correction for a second straight day Wednesday, with the benchmark index down 2 percent on profit-taking and program selling ahead of the expiry of options contracts Thursday.

The Korea Composite Stock Price Index, or Kospi, sank 12.07 points to 578.84, off a high of 589.42. Volume was very heavy at 528 million shares valued at 2.1 trillion won ($1.6 billion).

Decliners outstripped advancers 559 to 221, with 77 other stocks unchanged. Nineteen issues surged by their daily limit of 15 percent, while two shares plunged by that limit.

Foreign investors snapped up shares worth 81 billion won, but the buying was not strong enough to prop up the index, which was pulled down by profit-taking and program selling.

Key large-capitalized stocks led the day's losses. Samsung Electronics Co. shed 2 percent to 225,000 won and SK Telecom Co. dropped 4.4 percent to 219,500won.

Hynix Semiconductor Inc., which jumped by the daily limit Tuesday, slid 6.4 percent to 3,930 won on profit-taking. It was the most heavily-traded stock on 124.8 million shares. "Investors are cautious as the U.S. Nasdaq market is hovering below 2,200," said Kim Ji-young, an analyst at Samsung Securities Co.

The Kosdaq market also ended lower in correction. Its composite index lost 2.68 points, or 3.3 percent, to 79.59. Volume was heavy at 444 million shares worth 3 trillion won.Most large-cap stocks fell, weighing down on the index. KT Freetel was off 4.5 percent at 43,800 won and Hanaro Telecom Co. declined 3.4 percent to 3,670 won.

by Kim Hyun-chul