Strike Fears Send Stocks Into Slump

Seoul stocks ended lower Monday after Wall Street's losses on Friday. Investors have become cautious on concerns about the launch of a nationwide general strike scheduled for Tuesday and expiration of both options and futures on Thursday.

Foreign investors bought on the spot market but unloaded their holdings on the futures market, causing heavy program selling on the spot market. The Korea Composite Stock Price Index shed 13.55 points, or 2.2 percent, to close at 608.23. Trade volume was thin at 340 million shares. The daily turnover was 1.71 trillion won ($1.34 billion).

Core blue chips were generally weak. Samsung Electronics Co. plunged 4.3 percent, ending at 214,000 won. SK Telecom declined 3.2 percent to 210,000 won. Korea Telecom lost 4.2 percent, finishing at 56,800 won. Pohang Iron & Steel Co. was down 2.1 percent to 97,700 won. Korea Electric Power Corp. slid 3.5 percent to 23,150 won.

Investors rushed to the Hyundai Group's construction arms, after Hyundai Asan Corp. announced Saturday it agreed with North Korea to construct a road for overland tours to Mount Kumgang. Hyundai Engineering & Construction Co. soared 10.2 percent to 920 won. Korea Industrial Development Co. jumped 5.2 percent to 405 won.

Water lifting machinery makers rallied among increasing concerns about a prolonged drought. Keyang Electric Machinery Co. surged 15 percent, the daily limit, to 1,640 won. Shinil Industrial Co. jumped 12 percent to 6,050 won.

A total of 26 issues touched the daily ceiling and three hit the downward limit. Declining shares led advancers 463 to 332.

The Kosdaq market slid to below 80 points, led by technology shares, after the U.S. Nasdaq market's drop. The composite index closed at 79.52, down 1.25 points, or 1.5 percent.

Trade volume was 345 million shares, valued at 1.67 trillion won. Losing issues outnumbered gainers 359 to 209. A total of 27 shares rose 12 percent, the daily limit, and two fell by that limit.

Korea Telecom Freetel declined 2.8 percent, finishing at 39,500 won.

by Moon So-young