Technology Leads Markets' Decline

Seoul stocks ended marginally lower Wednesday, led by an erosion in technology shares. The main market opened weaker, after the U.S. Nasdaq market dropped overnight. Foreign investors sold both on the spot and futures markets, dragging down the Korea Composite Stock Price Index to nearly the 620-point level at one point.

But, in the afternoon, the downward pressure was curbed after foreign investors began purchasing on the futures market, spurring program buying on the spot market, and retail investors started bargain hunting.

The Kospi closed at 628.42, down 5.64 points, or 0.9 percent. Trade volume was down, at 450 million shares. The daily turnover was 2.3 trillion won ($1.8 billion).

Investors fled semiconductor stocks, after 128-megabit memory chip prices declined Tuesday to below $3 in the North American spot market. The news that Sun Microsystems Inc. cut already-lowered fourth-quarter profit forecasts provided investors more incentive to unload semiconductor shares.

Samsung Electronics shed 3.7 percent, ending at 223,500 won.

Other index heavyweight shares were mixed. Pohang Iron & Steel Co. closed unchanged at 108,000 won. Korea Electric Power Corp. added 1.2 percent to close at 25,300 won.

Daewoo Motor Sales Corp. jumped 6.6 percent to 4,380 won. General Motors Corp. submitted a takeover proposal for Daewoo Motor Co. in the afternoon. Sam Lip Precision Industrial, a parts supplier of Daewoo Motor, soared by the daily limit of 15 percent, to close at 1,370 won.

Fifteen shares rose to the daily 15 percent limit and eight hit the 15 percent down limit. Advancing issues outnumbered decliners 463 to 327.

The Kosdaq market fluctuated between 83 and 84 points for the fifth straight day. The composite index closed at 83.22, down 0.59 points, or 0.7 percent.

Trade volume was 492 million shares, valued at 2.12 trillion won. Losing issues outnumbered gainers 312 to 255. A total of 32 shares rose 12 percent, the daily limit, and four issues fell by that limit.

by Moon So-young