Nervous Traders Pull Shares Down

Seoul stocks ended lower Monday as concern grew about the outlook for the local and global economies. Washington and Seoul both reported lackluster economic numbers last week.

The Korea Composite Stock Price Index shed 7.6 points, or 1.4 percent, to close at 533.53. Heavy program-based selling caused by foreign investors' flight from the futures market and retail investors' profit-taking after the main board's sharp rise in the last two trading sessions also pulled the market down.

Korea's industrial output in June shrank for the first time in 32 months. The U.S. gross domestic product grew only 0.7 percent in the second quarter, the weakest performance in eight years.

"Investors turned cautious due to upcoming reports of major U.S. economic indicators, such as consumer confidence, as well as last week's discouraging reports," an analyst at LG Investment & Securities Co. said.

Kospi trade volume was sharply lower at 274 million shares with a value of 940 billion won ($723 million).

SK Telecom shed 1.5 percent, ending at 203,000 won. Korea Telecom slid 2.1 percent to 52,500 won. Korea Electric Power Corp. was down 2.6 percent to 20,650 won. Samsung Electronics closed unchanged at 185,500 won. Pohang Iron & Steel Co. added 1.4 percent, finishing at 87,300 won.

Losing issues overwhelmed gainers, 559 to 236. Sixteen shares rose 15 percent, the daily limit. Five issues fell by the limit.

The Kosdaq composite index slipped 0.48 points, or 0.7 percent, to close at 66.98. Trade volume was 322 million shares, with a value of 1.72 trillion won. Declining issues outnumbered advancers 371 to 212. Thirty-two shares rose by the daily limit of 12 percent; none fell the limit.

Index-leading telecommunications and dot-com shares were weak. KT Freetel lost 1.4 percent to 34,700 won, and LG Telecom fell 3.3 percent to 5,650 won.

Serome Technology, Daum Communications and Haansoft shed 3 to 5 percent.

by Moon So-young