South Korean shares continued their week-long fall on Thursday as investors remained pessimistic about the global economic outlook. The Korea Composite Stock Price Index (KOSPI) closed down 0.78 percent at 1,933.09 points, the lowest since September 11, before the Fed announced quantitative easing measures.
"This week was a real test for the KOSPI as the IMF and World Bank warnings on the world economy dampened investor sentiment, said Cho Byung-hyun, an analyst at Tongyang Securities. Cho predicted that the index could make a comeback if the US property market figures next week are strong, but until then, the KOSPI will continue to struggle.
South Korea's central bank cut interest rates on Thursday morning as expected, but the move had little effect on the market. Trading accelerated in the late session as options expired, resulting in selling pressure on index heavyweights.
Shares in Samsung Electronics fell as far as 2.7 percent in late session, recovering later to close 1.6 percent lower. While most large cap shares retreated in line with the index, Korea Electric Power Corp (KEPCO) bucked the trend. Shares in the state-owned utility gained 1 percent, recovering from a $550 million block sale that weighed shares down on Tuesday. Decliners outnumbered gainers 481 to 344. The KOSPI 200 benchmark of core stocks closed down 0.9 percent, while the junior KOSDAQ edged 0.2 percent higher.
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