Seoul shares recovered slightly from an over 7 percent nose-dive on Monday but still posted their lowest close in 10 months, as retail investors stepped up selling on the US credit rating downgrade. The Korea Composite Stock Price Index finished 3.82 percent lower at 1,869.45 points after losing as much as 7.4 percent, its worst daily percentage drop since late October 2008. The closing level was the lowest since October 19 last year.
KOSPI 200 September futures fell 9.75 points to 241.75 and the KOSPI 200 spot index slid 9.45 points to 242.45. The junior Kosdaq market finished down 6.63 percent at 462.69. The KOSPI has tumbled 14 percent over the past five sessions, wiping out 170.5 trillion won ($159.7 billion) in market value, the Korea Exchange said in a statement.
Foreign investors extended their selling streak to a fifth consecutive session, but cut net selling by around one-fifth from the previous session, to 77 billion won. Institutional investors bought a net 640 billion won in shares, while retail investors sold a net 732 billion won shares. The sharp falls in the KOSPI prompted the Seoul bourse operator to temporarily suspend programme trading on the main exchange. Earlier in the day, the bourse suspended all trade on the junior Kosdaq market for 20 minutes. Brokerages and shipbuilders were among the worst performers, with STX Offshore & Shipbuilding tumbling 10.95 percent and Eugene Investment & Securities diving 14.32 percent.
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