Seoul shares sink 1.72 percent on growth woes

South Korean stocks fell 1.72 percent Friday as the country’s weaker economic growth put a dent in investor sentiment amid a lack of market momentum, analysts said. The local currency gathered ground against the U.S. dollar.

The benchmark Korea Composite Stock Price Index fell 33.07 points to close at 1,891.43. Trading volume was moderate at 432.1 million shares worth 4.54 trillion won ($4.14 billion), with losers far outstripping gainers 680 to 171.

“The market is taking the quarterly growth a little further than expected. That’s largely a result of a void in further global stimulus as the U.S. and China are about to see government changes,” said Han Chi-hwan, an analyst at KDB Daewoo Securities Co.

The central bank said earlier in the day that South Korea’s gross domestic product grew 0.2 percent on-year last quarter, marking the slowest growth since the fourth quarter of 2009.

Speculation in New York markets that global appraiser Fitch Ratings may downgrade the U.S. sovereign rating also sapped investor confidence, said Shinhan Investment Corp. analyst Han Beom-ho.

Foreign investors sold a net 168.1 billion won, extending their selling spree to a sixth session.

Machineries and autos suffered a dip, with construction equipment maker Doosan Infracore tumbling 4.12 percent to 16,300 won and carmaker Kia Motors plunging 5.61 percent to 62,300 won.

Top-cap Samsung Electronics closed down 2.65 percent to 1,287,000 won even after it posted a nearly two-fold net profit of 6.6 trillion won for the third quarter.

Major tech firms also lost ground. Mobile phone and home appliance maker LG Electronics shed 1.22 percent to 73,000 won with the world’s No. 2 memory chipmaker SK hynix sliding 0.82 percent to 24,100 won.

Woongjin Coway, a leading water purifier maker, soared 12 percent to 39,200 won on news that it will be bought out by a domestic private equity fund as part of a bid to salvage its bankrupt holding company.

The local currency ended at 1,097.00 won against the greenback, up 1.2 won from Thursday’s close, continuing its gaining mode to a 13-month high, due to rising demand for riskier assets, dealers said. (Yonhap News)