Markets End Mixed On Sluggish Trade

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Markets End Mixed On Sluggish Trade

Share prices on Seoul's main exchange closed slightly lower Tuesday after the U.S. Nasdaq's 2 percent fall overnight and concerns over Thursday's expiration of stock futures and options contracts that could spark program selling.

The Kospi index edged down 1.08 points, or 0.2 percent, to close at 607.15. The index seesawed between positive and negative territory all day. Trading volume was thin at 315.8 million shares, the lowest since April 27. Turnover was 1.5 trillion won ($1.2 billion).

Losers led gainers 436 to 343, with 80 other stocks unchanged. Four issues plunged by the daily 15 percent limit, while 11 stocks jumped by that limit.

After a weak start, the Kospi recovered to 611.88 by midday on expectations that key restructuring issues at Hynix Semiconductor Inc. and Daewoo Motor Co. would be resolved soon. Hynix plans to draw foreign investment through overseas share issues, and General Motor Corp. is expected to make its bid to take over Daewoo by the end of this week. But the index failed to maintain the gains, as foreign investors sold shares worth 55 billion won.

Bank shares held firm on growing optimism over Hynix' and Daewoo's future. Chohung Bank rose 2.9 percent to 2,810 won and Korea Exchange Bank, Hynix's main creditor, added 0.8 percent to 3,320 won. Shinhan Bank was up 2.1 percent at 12,450 won.

Key large stocks ended lower. Samsung Electronics Co. shed 1.4 percent to 211,000 won and Pohang Iron & Steel Co. was off marginally at 97,400 won.

A general strike by militant labor unions had little impact on the stock market. "Investors believe that the issue has already been reflected in share prices," an analyst at Daishin Securities Co. said.

Shares of Korean Air and Asiana Airlines, which were forced to ground hundreds of flights due to a walkout by some union staff, both advanced. Korean Air gained 3.7 percent to 7,260 won, while Asiana was up 1 percent at 2,120 won.

The Kosdaq composite index inched up 0.6 points, or 0.8 percent, on resumed foreign interest. Technology stocks led the gains, with Jang Media Interactive Corp. gaining 3.6 percent to 24,700 won. Jusung Engineering Corp. rose 2.8 percent to 10,900 won.



by Kim Hyun-chul

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