Seoul shares decline

Seoul shares ended 2 percent lower on Wednesday with steelmakers and banking issues leading the retreat from Tuesday's sharp gains, as worries about a weakening global economy and its impact on consumer sentiment deepened. The Korea Composite Stock Price Index ended down 2.00 percent at 1,340.28 points after closing 6.1 percent higher on Tuesday, its biggest one-day rise since February 2002.
"Shares were under pressure after their big gains. Steeper falls in technology and industrial issues signify the gravity of the economy worries," said Jun Jiwon, a market analyst at Kiwoom.Com Securities. Foreign investors were net buyers on Tuesday after nine consecutive selling sessions, but switched to net sellers again on Wednesday, offloading 490 billion won ($394.8 million) worth of stocks as of 0050 GMT.
Shares of POSCO ended 8.52 percent lower and drove other steel shares lower on Wednesday, after the world's No 4 steelmaker warned of a grim business outlook due to slowing demand growth. Hyundai Steel and Donkuk Steel were also down 6.81 percent and 6.28 percent respectively. Shares in South Korean banks fell across the board after UBS made bearish comments on the country's financial sector, adding to worries about banks' health.
Hana Financial tumbled 7.59 percent and Woori Finance Holdings was down 2.63 percent. Shares in KB Financial ended 3.95 percent lower after Citigroup lowered its target price on the firm by 8 percent to 58,000 won from 63,000 won and cut its 2009 profit forecast.
LG Display slipped 2.98 percent after posting a 44 percent drop in quarterly net profit, above forecasts, with the industry outlook darkening as a global economic downturn hits demand for flat TVs and personal computers. Citigroup cut its 2009 operating profit estimate on LG Display by 44.3 percent to 523 billion won ($433.8 million) in a note on Wednesday, citing a weaker demand outlook.
Other key technology issues slid as worries about a recession and likely slump in consumer and business spending weighed on sentiment, sending Samsung Electronics 2.32 percent lower and Hynix Semiconductor down 4.26 percent. Institutions bought a net 193 billion won worth of shares and retail investors bought a net 235 billion won.
Decliners outnumbered advancers by 582 to 247, with 69 titles ending flat. Trade volume stood at 342 million shares worth 4.8 trillion won, compared with 452 million shares worth 6.9 trillion won on Tuesday. The KOSPI 200 December futures index lost 3.05 points to 174.95 and the KOSPI 200 spot index shed 3.87 points to 174.28. The junior Kosdaq fell 1.52 percent to 390.28 points.