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Seoul shares extended falls to a third session on Wednesday, as an unexpectedly large drop in US home sales fuelled concerns about global economies, sending key technology exporters such as LG Electronics lower. The Korea Composite Stock Price Index (KOSPI) closed down 1.46 percent to 1,734.79 points. Foreign investors were sellers of a net 199.4 billion won ($167.4 million) worth of stocks, snapping a five-session buying streak.
Blue chip exporters led falls. Samsung Electronics, the world's No 1 memory chip maker and the largest stock on the KOSPI, lost 1.4 percent, and LG Electronics, the world's No 3 handset maker, shed 3 percent. Steelmakers also lost ground, with POSCO, the world's No 3 steelmaker, losing 1.2 percent and Hyundai Steel declining 2.9 percent.
State-run power company KEPCO outperformed, gaining 1.3 percent, on easing uncertainties after the government laid out on Tuesday a plan to reform the power industry. Trading volume was 340 million shares worth 4.7 trillion won, compared with 394.9 million shares worth 4.98 trillion won in the previous session. The KOSPI 200 September futures index ended down 3.05 points at 226.45, and the KOSPI 200 spot index fell 3.43 points to 225.99. The junior Kosdaq market ended 1.51 percent lower at 467.81.

Copyright Reuters, 2010

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