Rate Cut No Help To Torpid Trading

Seoul's share prices turned lower Thursday amid lackluster trading, as investors struggled to find direction following the closing of U.S. markets for the Independence Day holiday Wednesday.

Stocks were buoyed by the National Pension Fund's buying in early trading but lost ground toward the closing, shrugging off a surprise interest-rate cut by the central bank. The Bank of Korea lowered its one-night interbank borrowing rate by 25 basis points.

The Korea Composite Stock Price Index inched down 3.64 points, or 0.6 percent, to close at 593.61, off a high of 600.51 and a low of 592.80. Trading volume was extremely thin at a 13-month low of 195.6 million shares valued at 1.1 trillion won ($848 million).

Decliners outstripped gainers 529 to 273, with 57 other stocks unchanged. Eight stocks plummeted by the daily 15 percent limit, while eight issues jumped by that limit.

Most large-capitalized stocks ended lower to drag down the index. Samsung Electronics Co. shed 2.1 percent to 37,200 won and Hynix Semiconductor Inc. slid 5.3 percent to 2,480 won. SK Telecom Co. slipped 1 percent to 200,000 won.

Limiting losses, Hyundai Motor Co. climbed 3.9 percent to 27,000 won and Pohang Iron & Steel Corp. was up 2 percent at 104,000 won.

The Kosdaq market also closed lower amid a lack of market-moving news or shares. Its composite index dropped 0.77 point, or 1 percent, to 76.72.

by Kim Hyun-chul