Seoul shares edged down on Wednesday to snap a three-day winning run, pressured by mounting worries over Spain's ailing banks and dashed hopes of aggressive stimulus action by China, although the index pared some earlier losses on technical support. Growth-sensitive sectors that rely on Chinese demand underperformed, led by shipping liners and petrochemicals firms. The Korea Composite Stock Price Index (KOSPI) closed down 0.27 percent at 1,844.86 points, after losing as much as 1.1 percent in the morning.
"Following a sharp correction, the market is starting to show some firm downside support," said Kim Seung-han, an analyst at HI Investment & Securities. The KOSPI is down 6.9 percent so far in May. It has regained some ground in recent sessions after dropping more than 10 percent for the month to a 2012-low on renewed flare-ups in the euro-zone debt crisis and signs of economic slowdown in the United States and China. Among China-reliant sectors, Hyundai Merchant Marine fell 3 percent and SK Chemicals slid 3.3 percent.
Keystone Global Co Ltd plummeted 14.9 percent after local media reports said the company was buying a $480 million stake in a US coal mine, triggering worries of a cash crunch. Keystone said in a filing that the acquisition has not been decided on yet. Foreign investors turned net sellers again, after snapping a 19-day capital exodus in the previous session. Offshore players sold a net 22.1 billion won ($18.8 million) worth of shares on Wednesday.
Trading remained choppy, with 399.3 million shares worth 3.6 trillion won changing hands. Losing shares outnumbered winners 516 to 305. The KOSPI 200 index of core stocks edged 0.24 percent lower while the junior, small-cap heavy KOSDAQ ticked down 0.09 percent.