Seoul shares slip

Seoul shares fell on Monday led by banking and Kumho Asiana Group related issues including Hana Financial Group and Kumho Petrochemical, amid renewed concerns about the group's financial position. The Korea Composite Stock Price Index (KOSPI) finished down 0.91 percent to 1,552.79 points, the lowest close since November 27, 2009.
"The market lacks enough momentum for a rebound and worries about Europe's debt problems persist, though we do not think these will develop into a broader crisis," said Lee Jin-woo, a market analyst at Mirae Asset Securities. Lee expected buying appetite to strengthen at the market's closing level, near the main KOSPI's 200-day moving average of about 1,555 points.
Kumho Asiana Group related shares tumbled amid worries about the parent group, after shares of Kumho Industrial were suspended from trading early Monday on rumours that the company might seek court protection. Kumho Petrochemical shares ended down 9.55 percent to 16,100 won, the lowest close since March 2, 2009, and Kumho Tire lost 5.83 percent. Banking shares also turned lower as worries about their exposure to Kumho Asiana group deepened, analysts said.
"In the case of Kumho Industrial's court receivership, financials will be the first to react, due naturally to their exposure to Kumho Asiana Group through lending," said Kim Seong-bong, a market analyst at Samsung Securities. Shares in KB Financial Group fell 2.34 percent and Shinhan Financial Group retreated 3.29 percent.
But defensive issues rose as investors turned increasingly risk-averse. Shares in SK Telecom, South Korea's No 1 mobile carrier, gained 2.31 percent, and tobacco monopoly KT&G ended up 1.34 percent. Technology issues rebounded, with Hynix Semiconductor, the world's No 2 memory chip maker, advancing 1.88 percent and LG Display, the world's No 2 maker of LCD panels, gaining 2.63 percent.
Brokerages declined, with shares in Woori Investment & Securities falling 3.79 percent and Daewoo Securities lost 2.4 percent. Retail investors picked up a net 114.4 billion won. Institutions bought a net 101.5 billion won, and foreign investors offloaded a net 222 billion won.
Decliners outnumbered advancers 545 to 247 with 82 issues ending flat. Trading volume stood at 436.9 million shares worth 4.1 trillion won, compared with 455.3 million shares worth 4.9 trillion won in the previous session. The KOSPI 200 March futures index ended down 1.25 points at 203.30, and the KOSPI 200 spot index fell 1.69 points to 203.37. The junior Kosdaq market declined 2.0 percent to close at 487.41.