Markets Resume Downward Trend

Investors drove down Seoul stocks again Wednesday after Tuesday's short-lived rally. The Korea Composite Stock Price Index fell 10.39 points, 1.77 percent, to 576.19.

Foreign investors sold on the U.S. Nasdaq 100 futures index's fall, after technology bellwether Cisco Systems Inc.'s reported disappointing earnings in its second fiscal quarter. Heavy program selling by institutional investors in advance of option expirations on Thursday also dragged the market down.

Investors generally stayed on the sidelines, awaiting an anticipated call rate cut by the Bank of Korea's monetary policy committee on Thursday. Trade volume was thin at 323 million shares. The value of traded stocks was down to 1.47 trillion won ($1.16 billion). Losing issues led gainers 586 to 226. Twenty-eight shares rose 15 percent, the daily ceiling, and seven issues hit the floor.

Most key blue chips lost. Samsung Electronics shed 2.74 percent, ending at 195,000 won. Hyundai Electronics Industries, which announced Wednesday that it lost 2.25 trillion won last year, was down 1.33 percent to 4,805 won. The memory chip maker said that most of the loss was a one-time entry from disposal of unprofitable assets during restructuring. Pohang Iron & Steel Co. slipped 0.54 percent to 92,000 won. SK Telecom lost 0.59 percent, finishing at 254,500 won. Korea Telecom declined 3.97 percent to 70,100 won. Korea Electric Power Corp. dropped 1.20 percent to close at 24,800 won.

The Kosdaq composite index closed Wednesday at 77.80, down 1.92 points or 2.41 percent.

Declining issues overwhelmed advancers 425 to 164. A total of 40 issues jumped by the daily limit of 12 percent, while 12 shares fell that limit.

All market sectors declined; there was marked weakness in leading dot-coms. Serome Technology, Daum Communication and Haansoft all tumbled about 7 percent.

Index-leading telecommunication issues also lost. KT Freetel shed 1.89 percent, to end at 46,700 won. KT M.Com declined 3.57 percent to 10,800 won.

Trade volume totaled 427 million shares valued at 2.52 trillion won.

by Moon So-young