Seoul shares at 14-month low

Seoul shares reversed early gains to fall to a new 14-month low on Wednesday after reports Iran tested missiles fuelled oil supply worries, while a sharply rising won weighed on exporters such as Samsung Electronics. The Korea Composite Stock Price Index closed 0.92 percent lower at 1,519.38 points, hitting its lowest since April 19, 2007.
The index had earlier gained as much as 1.5 percent to 1,563.07 points, helped by comments from the South Korean government that the country's stock markets had solid potential buyers as large-size pension funds, including the National Pension Service, were planning to up stock purchases. "Iran's missile test heightens the region's political risks and points to a likely hike in oil prices," said Lee Sun-yeob, a market analyst at Goodmorning Shinhan Securities.
The local currency's rally on reported government intervention added to downward pressure as a stronger won could eat into exporters' earnings. Samsung Electronics and Hyundai Motor weakened, with Samsung Elec closing 3.04 percent lower at 575,000 won, and Hyundai Motor dipping 0.14 percent to 68,900 won.
Foreign investors were net sellers for a 23rd consecutive session on Wednesday, offloading a total 6.5 trillion won ($6.32 billion) worth of shares in their longest selling streak since October 2005.
Energy-price sensitive airlines rallied as a stronger local currency could ease the burden of rising fuel prices and lower the interest costs of their foreign currency-denominated debts, analysts said, but political uncertainty in the Middle East limited gains.
Foreign investors sold a net 171 billion won worth of shares listed on the main board, and local institutions bought a net 33 billion won. Local retail investors bought a net 49 billion won. Advancers outnumbered decliners by 421 to 386, with 68 titles ending unchanged.
Trade volume stood at 324 million shares worth 5.16 trillion won, compared with 324 million shares worth 5.2 trillion won on Tuesday. The KOSPI 200 September futures index lost 0.45 points to 197.55 and the KOSPI 200 spot index fell 1.91 points to 194.61. The junior Kosdaq market rose 1.23 percent to 522.29.