Foreign Investors Drive Stocks Down

Foreign investors fled Seoul stocks Tuesday, dealing a blow to the main market, which fell below 600 points for the first time in nearly two weeks. The Kosdaq composite index also declined, tumbling below the 80-point mark.

The Korea Composite Stock Price Index closed at 597.66, down 13.25 points, or 2.2 percent. Foreign investors unloaded 107.6 billion won ($83.7 million) of shares, shrugging off Wall Street's overnight gains. Retail and institutional investors bought, respectively, 26.1 billion won and 68.6 billion won of shares.

Index heavyweight Samsung Electronics Co. was hardest hit by the foreign investors' selling spree. The chip manufacturer plunged 4.2 percent to 203,000 won, a seven-week low.

Foreign investors bailed out from the chipmaker, after the U.S. Semiconductor Industry Association said worldwide sales were down 4.7 percent in April compared with the month before, due to weak demand for computers and other electronics. Hynix Semiconductor dipped 3.9 percent to 4,160 won.

"Foreign investors unloaded their holdings as they were afraid U.S. tech firms would report weak earnings for the second quarter," said an analyst at LG Investment & Securities.

The weakness in blue chips was wide and deep. SK Telecom shed 2.5 percent, finishing at 213,000 won. Pohang Iron & Steel Co. was down 1 percent to 104,000 won. Korea Electric Power Corp. lost 1.8 percent, ending at 24,350 won.

Investment banking shares gained on the news that Tong Yang Hyundai Investment Bank and Regent Merchant Bank plan once again to merge.

Trade volume was 363 million shares, valued at 1.86 trillion won. Declining issues outpaced advancers 577 to 233. Sixteen shares rose 15 percent, reaching the daily ceiling. Fifteen issues slid by that limit.

The Kosdaq composite index shed 1.45 points, or 1.8 percent, to close at 78.92. Trade volume was 414 million shares. The day's turnover was 1.96 trillion won.

Korea Telecom Freetel declined 2.1 percent to 39,800 won. Losing issues overwhelmed gainers 463 to 113. A total of 15 shares rose by the daily limit of 12 percent and eight fell by that limit.

by Moon So-young