Fed Cut Ignored By Local Market

Seoul stocks ended lower Wednesday after Wall Street closed mixed overnight, though the U.S. Federal Reserve slashed key interest rates by half a percentage point Tuesday. The Korea Composite Stock Price Index declined 8.9 points, or 1.5 percent, to 572.4.

The interest rate cut had been widely expected and factored into stock prices, analysts said, so investors in Seoul focused on local business conditions.

The main market started weak but moved upward on a report that local consumer sentiment has improved. But late in the session, foreign investors dumped selling orders on the futures markets on a rumor that Hynix Semiconductor is facing difficulties in attracting foreign investment. Accordingly, heavy program-based selling dragged down the spot market. The memory chip maker tumbled 7.2 percent to 4,065 won ($3.13)

Most core blue chips were weak. Samsung Electronics was down 3 percent to 210,500 won. Korea Electric Power Corp. shed 3.5 percent, finishing at 22,300 won. SK Telecom closed unchanged at 209,000 won. Korea Telecom slipped 0.5 percent to 59,700 won.

A total of 22 issues rose 15 percent to hit the daily ceiling. Four shares fell the limit. Declining issues led advancers 468 to 329. Trade volume was 521 million shares, valued at 1.91 trillion won.

The Kosdaq market declined for a second day. The composite index lost 1.36 points, or 1.7 percent, to close at 80.12. Trade volume was 420 million shares, and the turnover was 2.28 trillion won. Foreign investors purchased, while institutional and retail investors sold.

Index-leading telecommunication and dot-com shares were generally weak. LG TeleCom tumbled 9 percent to 6,350 won. Hanaro Telecom shed 3.5 percent, ending at 4,110 won. Daum Communications plunged 7.2 percent to 43,600 won. Serome Technology slid 5.9 percent to 19,300 won. Haansoft was down 5.2 percent to 5,710 won.

Losing issues overwhelmed gainers 368 to 181. Twenty shares jumped by the daily limit of 12 percent and 11 hit the downward limit.

by Moon So-young